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Champaign County Housing Market Heats Up with Gains in May Home Sales

Single Female Buyers Growing Market Share

The Champaign County Association of REALTORS® reports double-digit increases in area home sales growth for the month of May of this year as compared to a year ago. CCAR reports a total of 325 residential homes were sold in May, an increase of 15.24 percent from 282 reported in May 2015. The total number of home sold year-to-date through May 2016 was 1,084 up 13.86 percent from 952 reported a year ago.

            The median home sale price in May was $142,000 down 4.05 percent from $148,000 in May of last year. The year-to-date median price through May of 2016 was $140,000 off 3.11 percent from $144,500 from the prior year. The median is a typical market price where half the homes sold for more, half sold for less.

            “With mortgage rates currently near three-year lows, this has helped to increase the pace of home sales activity in the Champaign County area for both move-up and first-time buyers,” said Stefanie Pratt, president of the Champaign County Association of REALTORS®. “Our pending home sales totals experienced a bit of a slow-down in June, perhaps due to graduations and end of school year activity. Right now people are out searching for the perfect property and are narrowing down their choices but may be hesitant and are holding out until they find exactly what they are searching for. We hope there is some resolution to the state budget impasse soon so as to not have any economic implications to our community.”

            As of June 13th there were 1,369 residential listings on the market, up from 1,315 listings on the market as of May 18th this year.

            There were 358 pending home sales reported for the month of May; that was the same amount reported in May of 2015. Pending sales for May reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.

            “There still is a demand for more inventory. Despite inventory shortages in certain price ranges the market is doing extremely well,” said Pratt. “According to the National Association of REALTORS® latest Homebuyer/Seller survey, single female homebuyers are the second largest share of buyers behind married couples. We are seeing a large percentage in our market area as well.”

            Total dollar sales volume for residential sales for the month of May 2016 was $54,095,512, up 16.21 percent from $46,547,385. Year-to-date home sales volume through May stood at $175,812,801, up 15.85 percent from $151,752,604 through May of 2015.

            According to the Federal Home Loan Mortgage Corporation, the average commitment rate for a 30-year fixed rate mortgage was 3.60 percent in May 2016, down from 3.8 percent from May 2015 and down slightly from 3.61 percent in April of 2016.

            “Sellers who decide to list this summer can take advantage of growing buyer demand,” said Pratt, a broker with Coldwell Banker Honig-Bell of Champaign. “Lower than expected job creation in April and May could delay the Fed’s decision to hike interest rates this month.”

            “The housing market news for the next three months indicates a continuation of the positive trends in both sales and prices,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois in his May housing forecast.  “Compared to last month, more people feel it is a good time to sell, but less people feel it is a good time to buy. Overall, consumer sentiment seems little changed with analysts pointing to the lower than expected April job growth as the probable cause.”

            The Champaign/Savoy region reported 152 home sales in May as compared to 122 home sales in May 2015. Urbana home sales were up 1.92 percent to 53 home sales versus 52 sales last May.

            The Champaign County Association of REALTORS® is a voluntary trade organization serving Champaign County and surrounding area and is a leading resource for REALTOR® members and an advocate for homeownership 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.

Tuesday, June 14, 2016/Categories: News Releases