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Champaign County Area Home Sales Continue Climbing

Mortgage Rates Currently at Three Year Low

The Champaign County Area Association of REALTORS® reports home sales rose by 25.60 percent for the month of April in the Champaign County area over the same period in 2015. The total number of home sold in the Champaign County region in April of 2016 was 260, as compared to the 207 homes sold in April 2015. The total number of homes sold year-to-date through April of 2016 was 759, reflecting an increase of 13.28 percent as compared to 670 in the same period a year ago.

            "In reviewing our Multiple Listing Service records back to 1999, this year's April home sales total of 260 is a record breaker for the month," said Stefanie Pratt, president of the Champaign County Association of REALTORS®.  "This shows how fantastic our home sales activity is in the Champaign County area as we kicked off a strong spring market. Our pending home sales totals also reflect a continuing momentum as we head into the summer.  Homes in good condition are selling faster so that means buyers need to act quickly in making their purchasing decisions to secure the property they want. The shortage area of homes for sale seems to be in the $140,000-$225,000 price range."

            For the month of April 2016, the median home sale price (for all single-family homes and condominiums) was $145,000, an increase of 4.92 percent from $138,200 from April 2015. The year-to-date median price through April of 2016 was $139,900, off 0.74 percent from $140,950 from the prior year. The median is a typical market price where half the homes sold for more, half sold for less.

            As of May 18th, there were 1,315 single-family residential listings on the market.

            There were 415 pending home sales reported for the month of April, reflecting an increase of 14.95 percent from 361 pending sales reported in April 2015. Pending sales for April reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

            Total dollar sales volume for residential sales for the month of April 2016 in the Champaign County area was $44,850,952 up 32.93 percent from $33,739,649 in April 2015. Year-to-date sales volume through April stood at $121,617,289 up 15.60 percent from $105,205,219 through April 2015.

            The average commitment rate for a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation was 3.61 percent in April 2016, down from 3.63 percent in April 2015, and down from 3.70 percent in March of 2016. According to Freddie Mac, the 30-year fixed rate mortgage fell to a three-year low last week at 3.57 percent.

            "This spring's low mortgage rates are easing affordability pressures, especially for  first-time buyers as they are stepping up to become new homeowners," said Pratt, a broker with Coldwell Banker, Honig-Bell in Champaign. "We should see continued healthy growth in the number of sales in most categories for the next few months as prospective buyers continue to take advantage of falling interest rates. With that in mind, the attention turns to inventory levels. With homes selling faster, more inventory and new listings are needed to replace those properties sold to meet the demand from buyers."         

            The Champaign/Savoy region reported home sale gains, up 36.26 percent from 91 sales in April 2015 to 124 sales in April of this year. Urbana home sales were up 8.33 percent to 39 sales from 36 in April of 2015.

            "The mid-priced market is doing very well in our area. However, sales are softer at the higher end of the market," Pratt indicates.

            According to Dr. Lawrence Yun, chief economist for the National Association of REALTORS®, nationwide home sales are forecast to come in at their highest pace since 2006.

            Speaking to REALTORS® attending the National Association of REALTORS® Legislative Meetings and Trade Expo in Washington, D.C. on May 12th, Yun forecasts existing sales to finish 2016 at a pace of around 5.40 million. The national median home price is forecast to slightly moderate up 4 and 5 percent in 2016.

            According to the April 22nd Freddie Mac April forecast, home sales are expected to be the best since 2006. Low mortgage rates and job growth will support the most home sales since 2006, according to Freddie Mac reports.

            The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and surrounding area and is a 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.

Thursday, May 19, 2016/Categories: News Releases