The Champaign County Association of REALTORS® reports the home sales activity pace in Champaign County declined in October while the median home sale price reported gains as well as the inventory of homes for sale and days on market. Champaign County year-to-date home sale activity through October is just slightly down by 1.9 percent as compared to one-year ago.
CCAR reports for the month of October 2017, the total number of sales decreased 11.4 percent to 164 sales as compared to 185 sales in October of 2016.
Also in October, the median home sale price (for all single family and condominiums) was $157,750, an increase of 4.2 percent from $151,375 a year ago. For year-to-date through October of 2017, the median home sale price was $154,475 up 3.0 percent from $150,000 during the same period last year. The median is a typical market price where half the homes sold for more, half for less.
There were 165 pending sales reported for the month of October reflecting a decrease of 10.3 percent from 184 pending sales reported a year ago. Pending sales for the month of October reflect the number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.
“In October, the Conference Board Consumer Confidence Index rose to its highest level in almost 17 years. That is definitely a boon for the retail and housing sectors as we head into the final months of the year. When consumers are feeling more optimistic about the economy and job market conditions that benefits other sectors of the economy including the housing market. The Champaign-Urbana market area has one of the lowest metro unemployment rates in the state of Illinois,” said Max McComb, president of the Champaign County Association of REALTORS®. “Mortgage rates are near 3.95 percent which continues to fuel home sales growth and should be especially attractive to both first-time and repeat buyers who are shopping for a home.”
The average number of days on market for all home sales in Champaign County in October of 2017 was 86 days, up 20.7 percent from 71 days in October of 2016. There were 59 home sales in October in the city of Champaign; Savoy had 14 sales versus 9 a year ago; Urbana had 33 sales up 73 percent from 19 sales a year ago; Mahomet had 25 sales in October; Rantoul had 11 sales and Monticello had 12 sales.
The average home sale price in October was $181,459 down 2.5 percent from $186,120 from October of last year. Inventory of homes for sale rose 4.4 percent to 969 properties from October one year ago.
“While the U.S. House passed sweeping tax reform measures in H.R. 1, the real work to shape the tax reform debate is just getting started in the U.S. Senate. The tax reform proposals pending before Congress overwhelmingly remove the tax incentive to purchase and own a home in America,” said McComb. “Eliminating the state and local property tax deduction and changes to the capital gains exemption will increase taxes now and when a home is sold. These incentives are critical for a strong housing market that creates jobs and builds stable communities.”
The Federal Home Loan Mortgage Corporation reported the national average commitment rate for 30-year, conventional, fixed-rate mortgage was 3.89 percent in October 2017, up from 3.47 one year ago and up from 3.80 percent in September of this year. The 30-year fixed rate mortgage averaged 3.95 percent for the week ending November 16, 2017.
“Despite improving confidence this year from renters that now is a good time to buy a home, the inability for them to do so is causing them to miss out on the significant wealth gains that homeowners have benefitted from through rising home sales,” said Lawrence Yun, chief economist for the National Association of REALTORS® in a residential and economic forecast session held at the 2017 REALTORS Conference and Expo this month in Chicago.
“Our home sales pace this year is pretty much in line with our expectations from the start of the year—last year was the best home sales pace since 2006 and right now we are just about just about one percent behind that figure which is still an incredible year for home sales in Champaign County,” said McComb. “With a healthy regional economy, sellers are going to continue to see strong prices for their homes. Sellers should work with a REALTOR® who can assist them in comparative market analysis, pricing, staging their home for sale, marketing and negotiating the best offer. Tighter inventories in certain price ranges are calling out for more listings as the number of new listings in October declined this month.”
According to Geoffrey J. D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois in his November Illinois REALTORS® housing forecast, “While consumer sentiment about the economy appears positive, there is still hesitation about the housing market. However mortgage applications have increased and prices and sales in both Illinois and Chicago increased on an annual basis, a trend that is forecast to continue into 2018.”
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.