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New Year Brings Higher Home Sales and Average Sale Price for Champaign County Area

Home sales got a robust start to the new year as more buyers stepped up their purchasing decisions in the Champaign County area. Gains were also reported in the average home sale price, according to the Champaign County Association of REALTORS®.

          CCAR reports a total of 154 residential homes were sold in January of 2018, up 9.22 percent from 141 sales in January of 2017.

          The average home sale price stood at $165,389, up 4.54 percent from $158,202 in January 2017.

          The median home sale price for January of 2018 for the Champaign County area was $133,250 down 4.48 percent from $139,250. The median is a typical market price where half the homes sold for more, half for less.

“We definitely are encouraged by the impressive start to the new year in terms of home sale activity in the Champaign County area,” said Max McComb, president of the Champaign County Association of REALTORS®. “The inventory on the market has been solid in our area, off just slightly, but definitely there is plentiful supply of properties available on the market and we expect that inventory to increase as we head into spring. The improving job market and prospects of higher mortgage rates are perhaps encouraging more home buyers to move up the date of their purchase.”

          Champaign and Savoy regional sales increased to 66 sales from 55 sales in January 2018. Urbana reported 22 sales from 19 a year ago and the west region including Mahomet saw 31 sales versus 28 sales in January 2018.

          The average rate on a 30-year fixed rate mortgage for the month of January according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 4.02 percent, down from 4.15 percent in January 2017 and up from 3.95 percent in December of 2017. The 30-year fixed-rate mortgage averaged 4.38 percent for the week ending February 15, 2018.

          “The forecasts for prices and sales for the first quarter of 2018 remain positive. After adjusting for inflation, prices are now 7% higher than pre-recession levels in Illinois and 9% higher in the Chicago PMSA,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory at the University of Illinois, in his January Housing Forecast for Illinois REALTORS®.  “A major uncertainty in 2018 is the net impact  limitations on state and local tax deductibility and the mortgage interest will have on one hand, with the reduction in tax rates that should increase consumer disposable income on the other.”

          “Now is a peak time when sellers are getting their homes ready to list to sell just in time for the spring market. Sellers should meet with a REALTOR® to help provide appropriate market evaluation in order to appropriately price their home in this competitive marketplace,” said McComb. “We are especially confident about the potential growth of home sale activity for the residential home sale market in the Champaign County area this spring and we should see an uptick in new construction as well helping to expand inventory levels.”

National housing starts were up 9.7 percent to a rate of 1,326,000 in January, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Single family housing starts increased 3.7 percent to 846,000 according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development.

“Terrific news on housing starts in January with a solid 10% gain,” said Lawrence Yun, Chief Economist for the National Association of REALTORS®. “This boost in housing supply not only helps the economy, but may also help the Federal Reserve temper the pace of future short-term rate hikes. That’s because the slow upward creep in the broad consumer price inflation is principally being driven by rising housing costs. Simply put, more housing supply means a lower inflation rate and potentially a slower pace of interest rate increases by the Fed.”

 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. Statistics are from residential sales within Champaign County. Data compiled by Midwest Real Estate Data, LLC as available on February 19, 2018.


Thursday, February 22, 2018/Categories: News Releases