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November Delivers Higher Average Home Sale Price

Lower Sales Volume and Higher Interest Rates

The Champaign County Association of REALTORS® reports an increase in the average home sale price for the Champaign County area in November while the pace of home sales activity declined as mortgage rates moved higher.

The average home sale price in November increased 3.87 percent to $171,759 from $165,361 in November of 2016. For the year-to-date through November of 2017 the average home sale price was $174,796 up 2.45 percent over the $170,617 price during the same period last year.

CCAR reports for the month of November 2017, the total number of sales in the Champaign County area decreased 19.72 percent to 171 sales compared to 213 sales in November of 2016.

 For year-to-date through November of 2017, the numbers of homes sold was 2,681 down 4.45 percent from 2,806 sales through November of 2016.

For year-to-date through November of 2017, the median home sale price was $150,000 up 3.45 percent from $145,000 during the same period last year. Also in November, the median home sale price (for all single family and condominiums) was down slightly by 0.64 percent to $139,000 from $139,900. The median is a typical market price where half the homes sold for more, half for less.

The monthly average commitment rate for a 30-year fixed rate mortgage was 3.91 percent in November 2017, up from 3.77 percent reported in November of 2016 and up from 3.89 percent reported in October 2017. For the week ending December 21, the average monthly fixed rate commitment rate for a 30-year mortgage was 3.94 percent.

“This November we definitely saw a cooler pace of home sales activity as compared to last year—but in contrast, November 2016 was a bit unusual for autumn home sales and was one of the highest levels in more than ten years so it would have been hard to maintain that pace,” said Max McComb, CDPE, GRI president of the Champaign County Association of REALTORS®.  “Listings continue to go under contract as the inventory of homes for sale increases, but there is increased demand for more listings that meet first-time homebuyer specifications. Buyers will continue to see favorable conditions through the winter for properties that are priced competitively and are in move-in ready condition.”

The latest National Association of REALTORS® Housing Opportunities and Market Experience (HOME) survey found that consumers are slightly less confident in the economy, their financial situation and whether now is a good time to buy or sell a home.

“The trifecta of faster economic expansion, robust hiring and low mortgage rates should be generating a surge in optimism and home sales as 2017 winds down,” said NAR Chief Economist Lawrence Yun. “Sadly, this is not the case. While overall demand remains high, it is not translating into meaningful sales gains. Too many prospective first-time buyers see fewer options within their budget and home prices are rising much faster than their incomes.”

The time it took to sell a home in the Champaign County area in November averaged 84 days, up from 79 days one year ago.

“One thing is definite is 2018 will bring higher interest rates and higher prices so buyers who are on the fence deciding on whether to buy or not should consider those prospects in evaluating their situation,” said McComb, a broker with RE/MAX Realty Associates in Champaign. “The expectation more millennials will want to buy in the new year offers a promising sign for homebuying demand.”

Statewide home sales totaled 11,604 homes sold, up 0.4 percent from 11,558 in November 2016. "The market is experiencing what appears to be a pretty typical seasonal slowdown in many areas of the state," said Illinois REALTORS® President Matt Difanis, ABR, CIPS, GRI, broker-owner of RE/MAX Realty Associates in Champaign.

"Illinois is poised to end the year in positive sales and median price territory, and the final quarter of 2017 should provide a steady push into the new year as more properties come onto the market after the holidays."

“While positive price changes and significant increases in the pending sales index continue to characterize the Illinois and Chicago economies, the declining inventory, along with the state’s anemic job growth, cloud the outlook for 2018,” said Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois in his December Housing Price Forecast for the Illinois REALTORS®.

There were 69 sales in the Champaign versus 82 versus last year; Mahomet had 20 sales versus 15 last year; Savoy had 5 sales versus 10 last November; Monticello had 12 sales versus 8 sales a year ago and Urbana had 23 sales versus 41 sales a year ago.  

“While the work on tax reform is complete for 2017, next year will likely hold opportunities to further improve the tax landscape for middle-class homeowners,” said McComb. “The REALTOR® Association worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment.”

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 Champaign County and surrounding areas. Data compiled by Midwest Real Estate Data, LLC as available on December 27, 2017.

Thursday, December 28, 2017/Categories: News Releases