The Champaign County area housing market continues to show impressive gains in home sale activity as August sales were up 23 percent over one year ago while the median home sale price moves on an upward track.
For the month of August 2020, there were 322 home sales, an increase of 23.85 percent from 260 home sales in August of 2019. Year-to-date home sales through August of 2020 totaled 2,060, an increase of 7.63 percent from 1,914 reported through the same period in 2019.
The median home sale price in August of the Champaign County area was $169,900 up 2.66 percent as compared to $165,500 in August of 2019. The median is a typical market price where half the homes sold for more, half for less.
The average home sale price in August was $190,953 off 0.71 percent from $192,326 in August of 2019.
“Buyers continue to face greater competition with a limited number of homes for sale, calling for quick-decision making on their behalf and from some sellers who are sometimes faced with multiple offers,” said Julie Roth, president of the Champaign County Association of REALTORS®. “Mortgage rates hit another record low in the month of September, averaging 2.86 according to Freddie Mac, bringing rates even lower. Prices continue to rise and houses continue to sell no matter what the price range. This August has seen the highest sales total for the month since 2016.”
The pending home sales volume in Champaign County continued to move higher. According to Midwest Real Estate LLC, there were 239 pending sales in August in Champaign County, up 20 percent from 199 in August of 2019. Pending sales for the month of August reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future. The average number of days on the market stood at 72 days in August, down 2.1 percent from 74 days in August of 2019. New listings fell by 14 percent in August. Inventory of homes for sale dated September 21, 2020 stood at 899 properties on the market.
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 2.93 percent in August, down from 3.62 percent in August of 2019 and down from 3.00 in July of this year. According to Freddie Mac, the 30-year fixed rate mortgage averaged 2.97 percent for the week ending September 17, 2020.
“The only thing holding back an even more robust housing market is the availability of more listings to choose from. If there were more properties for sale in the Champaign County region, home sales would be even higher than they currently are,” said Roth. “During a time of year when the typical homebuying seasons slows down a bit, this year is far from normal as buyer momentum continues to build heading into fall.”
Dr. Lawrence Yun, chief economist for the National Association of REALTORS®, predicts that existing home sales should reach 5.4 million for the year, a 1.1 percent gain compared to 2019 nationwide.
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said Yun. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Roth indicates that the pandemic has shifted many buyers’ priorities for requirements they are seeking in their home purchase.
“Buyer demand for home office space has accelerated during the pandemic while some buyers are seeking more outdoor space or a space in their new home for virtual schooling or a home gym,” said Roth. “For those individuals thinking of selling their home, now may be the time to make their move as buyers are in the market now and with limited numbers of properties on the market, we expect to see a busy fall housing market with mortgage rates at near record lows. While uncertainty remains on what effect the upcoming election and any seasonable resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term.”
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. Data was compiled by Midwest Real Estate Data, LLC as available on September 14, 2020.
The Champaign County Association of REALTORS® is an active participant in promoting equality and inclusion as longtime champions of fair housing with equal access to housing and opportunity for all. CCAR opposes discrimination based on race, color, religion, sex, handicap, familial status, sexual orientation, gender identity, & national origin.
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The Champaign County Association of REALTORS® is the "Voice for Real Estate" in the Champaign County area of Illinois, whose over 400 members are engaged in all facets of the real estate industry. CCAR was chartered in 1917.
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