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October Brings Strong Gains to Champaign County Area Home Sales and Prices

Home Sales Up 19.29 Percent in October

The Champaign County Association of REALTORS® reports the total number of home sales increased in October as did the area median home sale price and number of pending sales as compared to a year ago. For the month of October, home sales were up 19.29 percent with a total of 204 homes sold compared to 171 sales in the same month in 2015.

          The October median home sales price in the Champaign County area (for all single-family homes and condominiums) was $146,750, up 5.95 percent from $138,500. 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 $146,000, off 0.68 percent from $147,000 a year ago.

          CCAR year-to-date sales through October of 2016 totaled 2,584 up 8.25 percent from 2,387 home sales a year ago.

          “Housing demand has remained strong throughout this entire year and into the fall and we anticipate a strong fourth quarter given this month’s pending home sales figures. Homes for sale are moving quickly with our average days on market dropping. Some buyers may have accelerated their purchasing in October prior to the election to take advantage of current interest rate conditions,” said Jim Waller, president of the Champaign County Association of REALTORS®. “The residential new home sales market is gaining momentum as well with 152 new homes sold so far this year as compared to 129 through October of last year. From a seller perspective there are still a lot of buyers engaged in this market and looking for the right property to make their move before the end of the year.”    Total dollar sales volume for residential sales for the month of October was $36,484,925 up 29.78 percent, from $28,112,573 a year ago. Year-to-date sales volume stood at $442,314,165 up 10.45 percent from $400,440,753 a year ago. There were 220 pending sales reported for the month of October, reflecting an increase of 11.11 percent from 198 reported in October 2015. Pending sales for the month of October reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

          The average commitment rate for a 30-year fixed rate mortgage was 3.47 percent in October, down from 3.76 percent reported in October 2015 and up from 3.46 percent reported in September of this year, according to the Federal Home Loan Mortgage Corporation. Last week, the 30-year fixed rate mortgage stood at 3.57 percent.

          Sales activity in the Champaign/Savoy region rose to 102 sales in October from 67 in October of last year. The west region, which includes the town of Mahomet, reported sales of 39 homes this October compared to 25 sales a year ago.

          As of November 14th, there were 1,430 residential homes listed on the market in the Champaign County area, down from 1,448 residential homes reported on October 12, 2016.

          “Fundamental trends we have been seeing all year remain solidly in place with more millennials becoming homebuyers, an expanding area economy and improving job market all signal a boost for consumer confidence in the housing market in Champaign County,” said Waller, a broker with Coldwell Banker Honig-Bell in Champaign. “The Champaign County area housing market offers affordable housing opportunities which enable first time buyers the ability to become homeowners which is not the case in other market areas of the country. Interest rates still remain extremely affordable. There is much anticipation as to future growth and the unknown as relates to the economy and how soon the Federal Reserve may act to raise interest rates which could occur as early as December.”

The National Association of REALTORS presented an economic forecast at the 2016 REALTORS® Conference and Expo in Orlando on November 4th. According to NAR Chief Economist Lawrence Yun, national existing home sales this year are expected to finish at a pace of 5.36 million, the best year since 2006. In 2017, sales are forecast to grow roughly 2 percent to around 5.46 million homes. The national median existing home price is expected to rise to around 4 percent both this year and in 2017. Yun foresees a gradual uptick in borrowing costs heading into next year. By the end of 2017, he expects rates to be around 4.5 percent.

The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and the 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. Go to www.illiniopenhouses.com to preview upcoming open houses scheduled.

Tuesday, November 15, 2016/Categories: News Releases