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Champaign County Home Sales Slow in August

Year-to-Date Home Sales Stay Close to 2016 Levels

           Champaign County home sales and the median home sale price slowed in August while the number of pending sales increased, according to the Champaign County Association of REALTORS. CCAR reports for the month of August 2017, the total number of sales decreased 10.5 percent to 256 sales compared to 286 sales in August of 2016. For year-to-date through August of 2017, the numbers of homes sold was 1,841, down 2.0 percent from 1,879 from the same period last year. There were 200 pending sales reported for the month of August reflecting an increase of 8.1 percent from 185 pending sales reported a year ago. Pending sales for the month of August reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

 Also in August, the median home sale price (for all single family and condominiums) was $139,950, a decrease of 8.5 percent from $153,000 a year ago. For the year-to-date through August of 2017, the median home sale price was $154,250 up 2.8 percent from the $150,000 reported during the same period last year. The median is a typical market price where half the homes sold for more, half for less.  

            “In looking at the overall level of activity this year, 2017 is still on pace to be a banner year for the Champaign County housing market. The slight pause in activity we experienced this month can be more attributed to the fact that buyers were not finding the right property and not one of diminished demand, there still are savvy buyers eager and out shopping.”

The average number of days on market for all home sales in August of 2017 was 59 days, up 15.6 percent from 51 days in August of 2017. There were 127 home sales in the city of Champaign versus 142 in August of last year; there were 56 sales in Urbana versus 53 last year; Mahomet had 19 sales in August versus 28 last August, and Savoy had 17 sales, the same as August of last year.

            Young adults strapped with student debt are delaying buying a home an average of seven years, according to a Sept. 18th  joint study by the National Association of REALTORS® and American Student Assistance . NAR and ASA’s new study found that only 20 percent of millennial respondents currently own a home and that they are typically carrying a student debt load ($41,200) that surpasses their annual income ($38,800).

“Millennial homeowners who can’t afford to trade up because of their student debt end up staying put, which slows the turnover in the housing market and exacerbates the low supply levels and affordability pressures for those trying to buy their first home,” states Lawrence Yun, chief economist for National Association of REALTORS®.

The average fixed-rate mortgage for the month of August was 3.86 percent, down from 3.96 percent in July of 2017 and up from 3.43 in August of 2016, according to the Federal Home Loan Mortgage Corporation. For the week ending September 14th, the 30-year fixed rate mortgage averaged 3.78 percent. 

The recent drop in mortgage rates combined with the area’s low unemployment rate and improving consumer confidence continues to generate significant interest in home purchasing and contributed to an extremely competitive summer selling season.  Listings are moving fast, averaging just 59 days on the market,” said Waller. “Housing inventory is still under the 6-month supply that is needed for a normal housing market. The fastest moving price range still continues to be $150,000-$199,999.”

            According to Geoffrey J. D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois in his August forecast for the Illinois REALTORS®, "The concerns this month center on the continuing low inventory rates and the potential dampening of demand caused by real income growth failing to keep pace with rising house prices Housing affordability is once again becoming a concern, especially for those seeking to enter the housing market.”

The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and surrounding areas and is the leading resource for REALTOR® members and an advocate for homeownership and private property rights.

Wednesday, September 20, 2017/Categories: News Releases