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Champaign County Area Home Sales Reach Strongest Pace for November in Decade

Home Sales Up 30 Percent Over 2015

Mortgage rates inching higher did not slow down home sales activity in November in the Champaign County area as home sales rose by more than 30 percent as compared to a year ago, according to the Champaign County Association of REALTORS®. This total was the highest level of home sales reported for the month of November since 2005, when 213 homes were reported.

            For the month of November 2016, a total of 209 homes (single family and condominiums) were sold as compared to 160 homes sold in November of 2015, up 30.62 percent. A total of 2,793 homes have been reported year-to-date through November as compared to 2,547 sales in the same period a year ago, up 9.65 percent. There were 195 pending sales reported for the month of November, reflecting an increase of 3.72 percent from 188 pending sales reported a year ago. Pending sales for the month of November reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

According to the Association, the November 2016 median home sale price (for all single family and condominiums) was $140,000, off 1.84 percent from $142,625 November 2015. The median is a typical market price where half the homes sold for more and half for less. The median home sale price year-to-date is $145,000 as compared to $146,500 in 2015, down 1.02 percent.

As the year comes to a close, area real estate sales remain strong and are expected to remain so the rest of the year,” says Jim Waller, president of the Champaign County Association of REALTORS®. “We had a number of eager buyers who were ready to make their move in November to lock in their home purchase before interest rates moved higher and before year-end. However, inventory in certain price categories especially below $140,000 could use an added boost to help keep up with demand especially from first-time buyers—we aren’t seeing a dramatic drop off in the number of buyers who are searching for that right property.”

As of December 11th, there were 1,337 residential homes listed on the market in the Champaign County area, down from 1,430 homes reported on November 13, 2016. New home construction home sales have been higher in the CCAR region this year through November 2016 as compared to a year ago. In the CCAR region through November of 2016, a total of 166 new home sales were reported versus 134 sales through November of 2015.

Total dollar sales volume for residential sales for the month of November was $34,890,005 up 37.19 percent from $25,430,752 in November of last year. Year-to-date sales volume stood at $477,179,370, up 12.04 percent from $425,871,505 a year ago.

The average commitment rate for a 30-year fixed rate mortgage was 3.77 percent in November, down from 3.93 percent reported in November 2015 and up from 3.47 percent reported in October of this year, according the Federal Home Loan Mortgage Corporation. Mortgage rates hit an all-time high for 2016 last week at 4.16 percent for a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation.

Sales activity in the Champaign/Savoy region rose to 93 sales in November from 59 sales in November a year ago. The Urbana region reported 39 sales as compared to 35 in November 2015.

“While mortgage rates have moved higher since the election, in reality mortgage rates are still very low from a historic factor. Economic growth, low unemployment, attractive mortgage rates and job creation are spurring the housing market fueled by demand by millennials and boomers who are continuing to dominate the market. From a buyer’s perspective, any increase in rates will affect your monthly mortgage payment so locking in your mortgage rate now can affect the overall affordability conditions on your home purchase.”

The Realtor.com 2017 housing forecast expects next year to be a year of slowing yet moderate growth. Home prices are anticipated to increase 3.9 percent and nationally existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent. The housing market is expected to be in the middle of two massive demographic waves, millennials and baby boomers that will power demand for at least the next 10 years. Baby Boomers are expected to make up 30 percent of buyers in 2017.

The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and the surrounding area 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, December 13, 2016/Categories: News Releases