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Champaign County Area Home Sales Stay Strong in May

Champaign County area residential home sales inched forward in May nearly matching last year’s pace, according to the Champaign County Association of REALTORS®.  CCAR reports a total of 339 home sales were reported in May, comparable to 340 sales a year ago.

The average home sale price in May for the Champaign County area was $174,645, off by 3.87 percent from $181,676 in May one year ago.

The median home sale price in May for the Champaign County area was  $150,000, down 14.11 percent from $159,950 in May of 2018. The median is a typical market price where half the homes sold for more, half for less.

Areas reporting stronger home sales in the region included Urbana where home sales were up 44 percent to 72 sales from 50 in May a year ago; Mahomet sales were up 28 percent to 32 sales from 25 a year ago and Monticello home sales stood at 13 sales from 12 one year ago.

Year-to-date home sales for the entire Champaign County area through May of 2019 totaled 1,026, down 6.39 percent from 1,096 in May 2018.

 “Our market is pretty much on par with how the rest of the country is performing right now. When sellers place their home on the market, they need to be aware and realistic that we are in the midst of an equilibrium time in the market for both buyers and sellers,” said Eric Porter, president of the Champaign County Association of REALTORS®. “May certainly was one of the strongest months for home sale activity that we have seen in the Champaign County market area for home sales in several months.  Buyers are beginning to find wiggle room at some price points.”

The average rate for a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 4.05 percent in May 2019, down from 4.59 percent in May 2018 and down from 4.14 percent in April 2019. The 30-year fixed rate mortgage for the week ending June 20th averaged 3.84 percent up from the previous week when it averaged 3.82 percent. A year ago at this time, the 30-year FRM averaged 4.57 percent.

The Federal Reserve Mortgage Corporation indicated in its June forecast that concern about future world economic growth and uncertainty around trade and monetary policy have put downward pressure on interest rates. Freddie Mac predicts mortgage rates to average 4.1 percent in 2019, before increasing modestly to 4.2 percent in 2020.

 According to the Regional Economics Applications Laboratory (REAL) at the University of Illinois, statewide annual home sales are expected to increase slightly on a yearly basis in June, July and August, but could decrease when compared month-to-month.

“While consumer sentiment has become more broadly positive nationally, Illinois consumers appear to be responding a little more conservatively,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory in the June 2019 Illinois REALTORS® Housing Price Forecast.  “Housing sales continue to grow more slowly compared to prior years’ experience at this time of the year.”

Statewide sales year-over-year were down 1.3 percent in May. Home prices are moderating and inventory is improving, giving buyers an advantage in their search for a home this summer, according to Illinois REALTORS®.

 “New listings are providing more opportunities for buyers along with other favorable trends towards homeownership including historically lower mortgage and favorable labor conditions. The summer market is picking up and appears to be shifting to a more measured and balanced market,” said Porter. “These factors should sustain the momentum for the housing market for the rest of 2019.”

            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 the Champaign County area. Data compiled by Midwest Real Estate Data, LLC as available on June 14, 2019.

Friday, June 21, 2019/Categories: News Releases