The Champaign County Association of REALTORS® reports home sale prices increased for the eighth month in a row while the number of sales slowed for the month.
The median home sale price in May was $148,000 up 3.49 percent from $143,000 in May 2014. The year-to-date median home sale price through May of 2015 was $144,500 reflecting an increase of 6.25 percent over $136,000 reported during the same period in 2014. The median is a typical market price where half the homes sold for more and half sold for less.
For the month of May 2015 there were 282 homes sold, down from 305 home sales in the same period a year ago. However, year-to-date home sales are still above last year with 952 sales reported as compared to 943 a year ago.
There were 373 home sales pending in May, reflecting an increase of 16.92 percent from 319 in May a year ago. Pending sales for the month of May reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.
As of June 16th, there were 1,339 single family residential listings on the market, up from 1,330 in April.
"Current market conditions are prime but there were less buyers engaged in purchasing in May which could be attributed to several factors including overall consumer confidence in the Illinois economy and inventory factors. We also should have seen a greater increase in housing inventory in May as we ramped up for the busy selling season of the year. The pending figures indicate that sales are picking up and we should show a marked rebound in sales activity in the summer months," states Jeffrey Barkstall, president of the Champaign County Association of REALTORS®. "It is encouraging that our median home sale price continued to show increased growth for the eighth month in a row. The big wild card is how any uptick in interest rates in the next few months will impact the housing market as lower interest rates have continued to keep affordability strong. Financing issues such as qualifying for a mortgage are still a factor for able-ready, first-time buyers who are being locked out of the housing market."
The city of Urbana region reported a four percent growth in sales in May to 52 sales from 50 sales a year ago.
Dollar sales volume for the month of May was $46,547,385 off from $49,383.811 last year. Year-to-date dollar volume of sales was $151,752,604 up 3.09 percent from $147,196,391.
The average commitment rate for the North Central region for a 30-year fixed-rate mortgage, according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 3.8 percent for the month of May, down from 4.15 percent from May 2014 and up from 3.63 percent reported in the month of April. Freddie Mac reported in its June 11th Primary Mortgage Market Survey that interest rates reached new highs for 2015 with the average 30-year fixed rate mortgage above four percent for the first time since November 6, 2014 when it averaged 4.02 percent.
"National projections are that economic growth is expected to pick up in the second quarter through the remainder of the year and that should give a positive boost to the housing market. Lenders are reporting brisk activity in closing loans so we know that there remains steady growth in housing activity," says Barkstall, a broker with Century 21 Heartland Real Estate in Champaign. "Our market conditions are quite similar to last year with the pace of activity tied to overall economic growth patterns."
Fannie Mae's May 2015 National Housing Survey reports that consumer attitudes about the housing market showed marked improvement strengthening the case for a lift in housing activity this year. According to Freddie Mac, this is in line with the positive May jobs report which showed recent trends of firming personal income growth and overall household income growth. Those saying it is a good time to sell hit a new survey high of 49 percent.
The Champaign County Association of REALTORS® is a voluntary trade organization serving the Champaign County and surrounding areas and is the leading resource for REALTOR® members and an advocate for home ownership and private property rights. Statistics were compiled from local regions of the Champaign County Association of REALTORS® Multiple Listing Service, which covers Champaign County and surrounding areas.