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By Chris Stewart, Broker/Realtor at Jim Maloof/Realtor in Peoria, Illinois | March 10, 2025
If you’re thinking about holding off on buying a home in Peoria, Illinois, until interest rates drop, you might want to rethink that plan. As a Broker/Realtor at Jim Maloof Realty, I’ve seen firsthand how waiting for the “perfect” rate can backfire. The truth is, delaying your home purchase could cost you more—both in dollars and missed opportunities. Here’s why jumping into the Peoria real estate market now, rather than waiting, is often the smarter choice.
1. Home Prices in The Greater Peoria Area Rise When Rates Fall
Lower interest rates sound great, but they often spark a buying frenzy. In Peoria, Illinois, real estate moves fast when rates dip. Take 2021, for example: when rates hit historic lows, demand surged, and median home prices in the Peoria area jumped nearly 8% in a single year, according to local MLS data. A 1% rate drop might save you $150 a month on a $200,000 mortgage, but if that same home’s price climbs $20,000 due to competition, you’re not saving anything. By working with me, Chris Stewart at Jim Maloof Realty, we can lock in today’s prices before they spike.
2. You’re Missing Out on Equity in the Central Illinois Market
Peoria’s housing market has shown steady growth over the years. For instance, homes in neighborhoods like North Peoria or the Heights have appreciated 3-5% annually on average. Buying now means you start building equity sooner. Imagine purchasing a $250,000 home today—by next year, it could be worth $260,000 or more. Wait too long, and you miss those gains. Plus, if rates drop later, I can guide you through refinancing to lower your payments while keeping the equity you’ve earned.
3. Renting in Peoria Adds Up Fast
If you’re renting in Peoria while waiting for rates to fall, you’re losing money every month. Average rent for a two-bedroom apartment here is around $1,200, according to recent local listings. That’s $14,400 a year—money that could go toward a mortgage on a home in West Peoria or Dunlap. As your Broker/Agent at Jim Maloof Realty, I’ve helped clients see how even a higher-rate mortgage today beats throwing cash away on rent tomorrow.
4. Interest Rates Are a Guessing Game
Nobody can predict exactly when rates will drop—not even the experts. In 2022, many Peoria homebuyers waited, expecting rates to fall after a spike to 7%. Instead, they hovered there for months, and prices kept climbing. The Federal Reserve’s moves depend on inflation, jobs, and more—factors beyond our control. By partnering with me, Chris Stewart, I’ll help you focus on what is in your control: finding the right home in Peoria, Illinois, at today’s rates and prices.
5. Refinancing Is an Option Down the Road
Here’s a game-changer: you’re not stuck with today’s rate forever. I’ve worked with dozens of Peoria homeowners who bought when rates were higher—like 6% in late 2023—and refinanced when they dropped to 4.5% a year later, saving hundreds monthly. Buy now with my help at Jim Maloof Realty, and if rates fall, we’ll refinance your mortgage. Waiting, though? That’s a one-way ticket to higher home prices with no rewind button.
6. Life in Peoria Doesn’t Wait
Beyond the numbers, there’s a human side to this. Maybe you’re cramped in an apartment near Downtown Peoria, or you want a yard in Germantown Hills for your kids. Waiting for rates delays your life plans. I’ve seen clients regret pausing their dreams—like a couple who waited in 2020, only to see their ideal home on Bradley Avenue sell for $30,000 more a year later. Don’t let interest rates dictate your Peoria lifestyle.
Let’s Talk Peoria Real Estate Today
Waiting for interest rates to drop before buying a home in Peoria, Illinois, might seem cautious, but it’s a risky bet. Rising prices, lost equity, renting costs, and unpredictable rates can outweigh any potential savings. As Chris Stewart, your Broker/Agent at Jim Maloof Realty in Peoria, Illinois, I’m here to help you navigate today’s market and make a move that works for you. Why wait? Contact me today to explore your options and secure your dream home before it’s too late.
Ready to buy in Peoria? Call Chris Stewart at Jim Maloof/Realtor (309-251-8837) or visit our website (ChrisStewartRealtor.com)for expert advice on Peoria, Illinois, real estate!
