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Champaign County Area Home Sales Jump 11 Percent in November

November home sales in the Champaign County area continued their year-over-year rise with 191 closings, representing a 11.05 percent increase over 172 sales in the same month a year ago, according to the Champaign County Association of REALTORS®.  A total of 2,754 homes were sold year-to-date through November in the Champaign County area, up 2.65 percent from 2,683 homes sold through November of 2017.

The median home sale price in November of 2018 for the Champaign County area was $135,900, down 2.05 percent from $138,750 from November of 2017. The median is a typical market price where half the home sold for more, half for less.

The average home sale price in November in the Champaign County area was $159,143 down 6.99 percent from $171,109 in November of 2017.

The Federal Home Loan Mortgage reported the national average commitment rate for a 30-year, conventional, fixed rate mortgage was 4.87 percent in November, up from 3.91 percent in November of 2017 and up from 4.83 percent from the previous month. The 30-year fixed fell to 4.63 percent last week – the lowest it has been since mid-September. Mortgage rates have either fallen or remained flat for five consecutive weeks.

“Champaign County area home sales continue to remain ahead of 2017 home sale totals with one month remaining to report in the year. Job growth and an uptick in wage growth has helped the housing industry during this period of U.S. economic prosperity.  As we look ahead, the biggest unknown relates to the economic front as we could see a slowdown in the economy in the new year,” said Eric Porter, president of the Champaign County Association of REALTORS®. “We anticipate hopefully that inflation will remain in check and not increase so as to erode the purchasing power of would-be home buyers who are already paying higher mortgage rates. Mortgage rates should continue on an upward trend with the Federal Reserve expected to raise interest rates this month and perhaps at least twice in the new year.”

           
According to the realtor.com housing forecast, home price growth should increase moderately in 2019, with a forecasted increase of 2.2 percent. Millennials will account for 45 percent of mortgages in 2019 versus 17 percent for boomers. Buying a home will be an even more expensive undertaking in 2019 as mortgage rates and home prices increase.

“Inventory will continue to increase next year, but unless there is a major shift in the economic trajectory, we don’t expect a buyer’s market on the horizon within the next five years,” said Danielle Hale, chief economist for realtor.com®. “Unfortunately for buyers, it’s only going to get more costly to buy, especially the most-demanded entry level real estate. To be successful, buyers should think through how they’ll adapt to higher rates and prices.”

Mortgage rates are forecast to reach 5.5 percent by the end of the year and monthly mortgage payments are expected to increase by around 8 percent.

 Buyer demand in the Champaign County area market still remains strong so this is an encouraging factor for many sellers who are considering 2019 to make a move to sell and move up or downsize depending on their current situational needs. REALTORS® continue to feel the strain of trying to find housing at every economic level and especially at the entry level,” said Porter. “In 2018, we have continued to see robust commercial development that will hopefully continue in the coming year.”

The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and surrounding areas and is a leading resource 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 December 14, 2018.

Wednesday, December 19, 2018/Categories: News Releases