Home sales in Champaign County
remained stubborn for the second consecutive month in May as supply levels were
off slightly over a year ago, although prices continue to gain traction,
according to the Champaign County Association of REALTORS®. The total number of home sold in Champaign
County decreased 3.9 percent to 271 home sales as compared to 282 home sales in
May 2016. The year-to-date total number of homes sold is down slightly, off 2.6
percent to 903 sales through May as compared to 927 sales a year ago.
For the month of May
2017, the median home sale price (for all single-family homes and condominiums)
was $155,000 up 5.8 percent from $146,500 in May 2016.
The year-to-date through May 2017 median home sale price
stood at $149,000, up 2.8 percent from $145,000 over the same period a year
ago. The median is a typical market price where half the homes sold for more,
half sold for less. The average home sale price stood at $181,808, up 5.9
percent in May 2017 from $171,602 a year ago.
“Low mortgage rates are still triggering more buyer
demand in this market but some buyers are finding it taking a bit longer to
find the right property that suits their prerequisites. The number of new
listings and inventory of homes for sale continue to decrease in the Champaign
market area,” said Jim Waller, president of the Champaign County Association of
REALTORS®. “REALTORS® report inventory levels and strong buyer demand is
leading to more multiple offer situations in this hot spring/summer selling
market and buyers have to proceed quickly on their offer if they find the home
they wish to purchase.”
As of June 15th, there were 124 sales reported
for May in the city of Champaign, 60 sales in Urbana, 23 sales in Mahomet and
14 sales in Savoy. There are currently 918 listings on the market in Champaign
County. The average number of days it took to sell a home was 61 days, down
from 69 days a year ago.
The average 30-year fixed rate mortgage for the month of
May was 4.01 percent, according to the Federal Home Loan Mortgage Corporation,
up from 3.60 percent in May 2016 and down from 4.04 percent in April 2017.
On June 14th, the Federal Reserve acted to
raise the federal funds rate a quarter of a percentage point to 1 to 1-1/4
percent. According to Lawrence Yun, chief economist for the National
Association of REALTORS®, “The
latest rate hike is partly justified from ongoing economic expansion and also a
steadily falling unemployment rate. However, the Federal Reserve should be
mindful of the lower than expected rate of inflation and the consequent low
interest rates on long-dated bonds, like 10-year Treasury and 30-year mortgage
rates. An inversion in interest rates of short-term fed funds being higher than
long-term bond yields can easily pull down the economy into a recession. We are
getting closer to that inversion point.”
Geoffrey J. D. Hewings, Director of the Regional Economics Applications
Laboratory at the University of Illinois reports the median
price forecast indicates moderate annual growth in both
Illinois and the Chicago PMSA for May, June and July.
sales will continue the usual early summer upward growth, there are some sharp
differences in the forecasts for median prices. The forecasts for median price
indicate continued positive changes, but the REAL Housing Price Index (HPI),
which compares specific housing characteristics, suggests declines and may also
be reflecting the employment losses in the state over the past two months,”
Mae also announced policy changes this month to aid millennial homebuyers
especially those that have remained locked out of homeownership by high debt-to-income
ratios and student loan debt. Fannie
Mae announced beginning July 29th, they will accept
borrowers with debt-to-income ratios as high as 50 percent, up from 45 percent
previously. “Young adults are finding it difficult to save money for down
payments, qualify for a mortgage and afford mortgage payments. Program
adjustments will open lending to more potential buyers who meet credit score
and loan standard qualifications,” said Waller.
sellers remain skittish about putting their homes on the market, perhaps given
in part they have concerns they might not find the right replacement home;
overall this trend leads to a tightening of the market in terms of inventory.
But right now, we are seeing more of a seller’s market with reduction in
housing inventory as demand still remains strong from buyers who are eager to
purchase and are in the market right now searching for that right home. That
means for sellers this could be a prime opportunity to sell their home.”
Champaign County Association of REALTORS® is a voluntary trade organization
serving Champaign County and surrounding areas and is a leading resource for
its 473 REALTOR® members and an advocate for homeownership and private property
rights. Statistics are from residential sales within Champaign County. Data
compiled by Midwest Real Estate Data, LLC as available on June 15, 2017.
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The Champaign County Association of REALTORS® is the "Voice for Real Estate" in the Champaign County area of Illinois, whose over 400 members are engaged in all facets of the real estate industry. CCAR was chartered in 1917.
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