Another expense is inflated: your property taxes
This past September the average home sold for nearly $20,000 more than last year.
PEORIA (25News Now) - Home values are increasing, which can be good or bad news for homeowners. The good news is that homes are worth more, but the bad news is that property taxes will cost more, too.
Several times over the past year, the Federal Reserve has raised interest rates to prevent an economic recession.
That has created a cooling effect where fewer people are buying and selling their homes, but even those not interested in selling their homes are seeing an increase in property values and taxes.
It is not because of any increase in the tax rate. Peoria County recently passed a budget that required no change.
“They’ve been going up for the past couple of years... I don’t know the exact price, but I know they’ve been going up. Everything’s been going up. It’s stressful. Prices going up, everything’s going up. Gas, groceries,” said Peoria homeowner Adam Davidson.
Data from the Peoria Area Association of Realtors show home sales are down compared to the same time last year.
| Listing | 2022 | 2023 |
|---|---|---|
| New | 632 | 500 |
| Pending | 523 | 412 |
| Closed | 568 | 506 |
For example, this past September there were about 100 fewer homes listed on the market than in September 2022. There were also far fewer pending and closed sales.
However, not everything is down. The prices of homes are up.
This past September the average home sold for nearly $20,000 more than last year.
“Higher mortgage rates have had the effect of buyers having to adjust the homes that they’re able to buy--more than slowing sales down,” said PAAR President Robin Simpson.
| Avg. Sales Price | |
|---|---|
| 2022 | $168,334 |
| 2023 | $188,521 |
The PAAR said it’s still a good time to sell because of a smaller inventory of homes on the market.
The Peoria Township Assessors Office determines the value of homes to calculate property taxes. Users on the East Bluff community Facebook page say they saw an increase of around 10%.
Adam Davidson said his family of four was considering moving because of the rising costs all around and may choose another county.
“I’ve gotten a second job to try and help pay more stuff, we have thought about moving out of Peoria County, obviously,” said Davidson.
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