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Champaign Area Home Sales Slowed Modestly in August

Champaign County area home sales slowed modestly in August, according to the Champaign County Association of REALTORS®. For the month of August, a total of 272 homes were sold as compared to 282 in the same month in 2013,  a drop of 10 home sales or 3.54 percent. The hottest region is the West, dominated by the Mahomet market, which reported 49 home sales, up 22.5% from 40 home sales in August of last year.

            Year-to-date home sales through August 2014 totaled 1,873, up 1.62 percent from 1,843 reported during the same time in 2013.

            The August median home sales price in the Champaign area (for all single-family homes and condominiums) was $137,500, down 6.77 percent from $147,500. The median is a typical market price where half the homes sold for more and half sold for less. The median price year-to-date is $139,500, up 1.45 percent from $137,500.

            "Each year as the school year begins we typically see home sales level out and the pace of activity decline. Just because the weather cools off doesn't mean the housing market will freeze up ," said Phil Trautman, president of the Champaign County Association of REALTORS®.

             "The pick-up in pending home sales activity suggests continued positive momentum heading into the fall--meaning there are a lot of buyers out there searching for the right home to purchase-- which should eventually lead to more closings this fall. That should be a real confidence booster to sellers who may be ready to place their home on the market this fall--as off-season buyer foot traffic continues to remain strong. Buyers are definitely looking for more inventory selection as they begin their search for the right property."

            Total dollar sales volume for residential sales for the month of August this year was $44,750,658.00 as compared to $47,747,923.00 a year ago. Total year-to-date sales volume stood at $303,313,695.00 up 4.39 percent from $290,536,386.00.  

            "The Champaign-Urbana metro area continues to report one of the largest percent increases of all metro areas in the state as far as new job growth. The labor market fuels more household formations and housing demand. This bodes well for the improving Champaign-Urbana economy and for the performance of the area housing market," said Trautman.

            Pending home sales for the month of August increased to a pace of 236 sales; there were 219 pending sales reported in August a year ago. Pending sales for the month of August reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

            The University of Illinois Regional Economics Applications Laboratory statewide sales forecast for August, September and October 2014 suggests a downtrend both on an annual and monthly basis.  The three month average forecast points to a change of between -4.7 percent and -3.5 percent for Illinois.

            "The improving national job market is reflected in a more confident attitude on the part of consumers and home builders, although recent employment growth in Illinois has underperformed both the Midwest and the nation. If the current foreclosure inventory continues to decrease at recent rates, then the inventory will return to pre-recession levels by the end of the year in Illinois," said Geoffrey J. D. Hewings, Director of the Regional Economics Applications Laboratory in the University of Illinois August Housing Price Forecast.

            "At the Illinois Association of REALTORS® convention last week in Chicago, Governor Pat Quinn announced additional funds will be available through the Illinois Housing Development Authority's Welcome Home Illinois program. To date, 6,320 mortgages have been provided to first-time buyers through the IHDA Welcome Home Illinois program that offers $7,500 in downpayment assistance with a 30-year fixed rate mortgage with a below-market interest rate. Programs like these are essential to assist first-time buyers find and qualify for adequate financing for their first home purchase," said Trautman, Managing Broker and Senior Appraiser of Champaign County Realty and Appraisals by Trautman in Champaign.  "Credit worthy buyers should be looking now at the distinct advantages to owning their own property and the long-term benefits to buying that can lead to smart equity investment."

            The monthly average commitment rate for a 30-year fixed-rate mortgage for the North Central Region was 4.10 percent in August 2014, down from 4.11 percent in July 2014, according to the Federal Home Loan Mortgage Corporation. In August 2013, the average rate was 4.44 percent.

            The Champaign County Association of REALTORS® is a voluntary trade organization serving the Champaign County and surrounding areas, and is the leading resource for REALTOR® members and an advocate for homeownership and private property rights. Statistics were compiled from local regions of the Champaign County Association of REALTORS® Multiple Listing service which covers Champaign County and surrounding areas.

 

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Tuesday, September 09, 2014/Categories: News Releases