From what I have read your peak is determined by your aerobic functioning. Since the 5K is about 85% aerobic, it would seem that you are improving yourself by continuing to build a strong base.
However this might not always immediately bring racing success. Along with the base building you should be working on speed all year long. (Speed Development is 100 meter repeat running or less, dynamic running drills, bounding, hill running, and etc.) You can and should develop your speed all year long.
Also often overlooked is running multiple speeds, hence I would do at least one fartlek workout per week and mix paces.
I think it would be far fetched to run 7 minutes per mile in training all week and then expect to run at 5:30 per mile pace for a race.
This is not a complete analysis of what needs to happen. One still must race, and do intervals of 400 meters and above. (In fact you will see your best gains with those in the short term!)
The key may be to be doing the right thing at the right time. Periodization is important.