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Champaign County Housing Market Gains Reported in Both Sales and Prices in July

Affordability Key Factor in Champaign County Housing Market

If you’ve been thinking about buying a home, right now might be the perfect time. Housing data shows home prices in the Champaign County area are currently below the national average.

            The Champaign County median home sale price was $169,450 in July, up 8.6 percent from $156,000 one year ago. According to the National Association of REALTORS®, the national median existing home price for all housing types in June was $263,800, up 6.5 percent from June 2016. The median is a typical price where half the homes sold for more and half for less.  

           CCAR reported there were a total of 310 closed sales (single family and condominiums) in July, up 1.6 percent from 305 sales in July of 2016. The number of year-to-date sales are off slightly by -0.9 percent in Champaign County to 1,579 sales from 1,593 sales through July of 2016.

            “The Champaign County housing market remains on a strong track despite a tighter inventory of homes for sale,” indicates Jim Waller, president of the Champaign County Association of REALTORS®. “With job creation increasing in the Champaign-Urbana market area and mortgage rates remaining low, the pull toward homeownership is expected to continue. Mortgage rates are expected to stay below 4 percent for the remainder of the year, and that should keep the housing market steady with home sales activity.”

            It took an average of 67 days to sell a home in Champaign County in July. The average home sale price in Champaign County in July was $203,531 up 10.4 percent from $184,319 one year ago.

            There were 148 sales reported in the city of Champaign for July versus 141 last year; there were 61 sales in Urbana versus 54 in July of 2016. Monticello had 14 sales versus 13 sales in July of 2016, and Rantoul had 11 sales versus 9 in July, 2016; Savoy had 16 sales this July versus 23 sales in July of 2016.

            The average 30-year fixed rate mortgage for the month of July was 3.96 percent, up from 3.89 percent in June 2017 and up from 3.44 percent in July 2016, according to the Federal Home Loan Mortgage Corporation. For the week ending August 17, the 30-year fixed rate mortgage averaged 3.89 percent.

           

“Home sale prices continue to gain traction. If you are a buyer searching for a home priced below $250,000 you may need to be prepared for increased competition and perhaps extend your housing search to find the right home,” said Waller. “Reduction in inventory, especially in lower price ranges, has continued to hold back home sales in 2017. It is not unusual to see multiple offer situations over asking price in many communities.”

            According to Geoffrey J. D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, statewide home sales forecast for July, August and September 2017 suggests increases on a yearly basis and decreases on a monthly basis for Illinois. “While the housing market continues to record gains in prices and sales, the inventory problem remains an important issue,” notes Hewings. “Hopefully, now that the state has a budget, a recovering state economy will encourage more investment in housing—both new construction and investment by first-time buyers.”

            A recent Realtor.com Housing Shortage Study suggests shortage of housing inventory can be attributed to two primary reasons—boomer’s reluctance to sell and the lack of homes fitting current family needs. The report states homeownership among baby boomers, at 78 percent, is nearly twice as high as millennials at 41 percent. The survey revealed 85 percent of baby boomers are not planning to sell their home in the next year.

"Boomers indeed hold the key to those homes the market desperately needs, both in the urban condo and the detached suburban home segment," said Danielle Hale, chief economist for realtor.com.

            The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and surrounding areas and is a leading resource for its 481 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 August 14, 2017.

Wednesday, August 23, 2017/Categories: News Releases