a slight decrease in home sales activity in the Champaign County area, 2017 was
one of the best years on record in the past decade and home prices continued to
increase moderately. Year-end 2017 total home sales of 2,882 for the Champaign
County region slipped by 4.79 percent from 3,027 in 2016.
The median home sale price for 2017 for the
Champaign County area stood at $150,000, was up 3.45 percent from $145,000 in
2016. December 2017 home sales were down
9.5 percent to 200 sales from 221 sales in December of 2016, while the median
home sale price for December 2017 decreased slightly by 0.24 percent to
$145,650 from $146,000 in December of 2016.
The median is a typical market price where half the homes sold for more,
half for less.
The average home sale
price for 2017 for the Champaign County area was $174,420 up 2.47 percent from
$170,217 from 2016.
“Positive growth in
consumer confidence, labor and stock market are setting the stage for a steady
housing market in 2018,” said Max McComb, CDPE, GRI president of the Champaign
County Association of REALTORS®. “The 2017 sales pace for the CCAR region was
just a bit under 2016 which puts us at the second best year in the past decade
for home sales activity. The region is experiencing a slow but steady recovery
as a result of the settlement of the state budget impasse that cast a shadow of
economic uncertainty over the Champaign-Urbana area and funding issues as
relates to higher education.”
City of Urbana home sales
were up 0.41 percent to 495 sales in 2017 versus 491 sales in 2016. Champaign and Savoy region sales decreased
6.19 percent in 2017 to 1,303 sales as compared to 1,389 one year ago. The west
region including Mahomet saw home sales rise 3.28 percent to 504 sales as
compared to 488 sales in 2016.
strengthening economy, and expectation that more millennials will want to buy,
serve as promising signs for solid homebuying demand, while also putting
additional pressure on inventory levels and affordability,” said Lawrence
Yun, Chief Economist for the National association of REALTORS®. “
Median prices are forecast
to continuously grow in 2018 within a narrower and slightly smaller range
compared with 2017, indicates Geoffrey J. D. Hewings, Director of the Regional
Economics Applications Laboratory (REAL) at the University
of Illinois in his 2018 Housing Price Forecast for Illinois REALTORS®. On a year-over-year basis, these gains should
range from 0.7 percent to 4.4 percent for Illinois and 1.8 percent to 5.6
percent for the Chicago PMSA. Hewings forecast predicts sales statewide should
experience overall positive gains in 2018.
“Illinois’ employment recovery has slowed
perceptibly over the last 12 months,” noted Hewings. “There is no doubt that
the lingering effect of the state budget impasse, the declining inventory
together with the anemic employment growth rate all contributed to dampening
the housing market. Uncertainty about
the impact of mortgage interest and state and local tax deductibility may
reduce the attraction of house purchases among first-time buyers in 2018.”
At the Illinois REALTORS
Public Policy Meetings on January 17 in East Peoria, Hewings also shared that
Illinois job growth lags behind the U.S. and other Midwest states. Illinois
added only 25,900 jobs in the last 12 months, far behind the 83,000 jobs needed
to grow at the rate of its share of the gross domestic product. Outmigration in
the state is also an issue as more than 33,000 people left Illinois just last
year. When immigration doesn’t replace those losses, it impacts the housing
market, Hewings indicated.
The average rate on a 30-year fixed rate
mortgage according to the Federal Home Loan Mortgage Corporation (Freddie Mac)
was 3.95 percent in December of 2017 down from 4.22 percent in December 2016
and up from 3.91 percent in November of 2017. For the week ending January 25,
the average monthly fixed rate mortgage rate for a 30-year mortgage was 4.15
“Commercial real estate activity is expected
to strengthen regionally and with an expanding economy that benefits all segments
of the commercial market crossing into residential,” said McComb.
The time it took to sell a home in the
Champaign County area in 2017 averaged 74 days compared to 80 days in 2016.
“Good news for buyers is we should see
increased inventory headed into spring although recovery in the starter home
market likely may take a bit longer as millennials continue to dominate that
lower price market share. Prospective buyers can expect to see an uptick in
mortgage rates and moderate price gains in 2018. Buyers may not benefit from higher prices,
but sellers do and there should be more listing activity by more confident
sellers in 2018,” said McComb. “This is an opportune time for sellers to
prepare their home for sale as inventory remains tight in certain price ranges.”
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. Data compiled by Midwest Real Estate Data, LLC
as available on January 15, 2018.
Service is our most important product | Serving all of Champaign County and surrounding areas
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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