The Champaign County Association of REALTORS® (CCAR) reports home sales increased 5.9 percent in the month of May as compared to the same period last year. CCAR reports a total of 341 sales of residential homes in May, compared to 322 home sales in May of 2017.
“Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upwards and unemployment trending downward month after month, demand in the local housing market remains strong. Median prices continue to follow a more predictable path showing slow, steady growth,” said Max McComb, president of the Champaign County Association of REALTORS®. “The upward tick of mortgage rates is infusing urgency to get into a new home before it costs more later.”
The median home sale price in May was $158,000, up 5.9 percent from $149,200 in May of last year. The median is a typical market price where half the homes sold for more, half sold for less. The average home sale price for May was $181,066, up 3 percent from $175,784 in May of 2017.
There were 303 pending sales in May as compared to 285 in May a year ago, an increase of 6.3 percent. 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.
The average rate on a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 4.59 percent in May 2018, up from 4.01 percent in May 2017 and up from 4.46 percent in April 2018. The 30-year fixed rate mortgage for the week ending June 14th averaged 4.62 percent during the week. Freddie Mac reports this is the second highest level of the year following the Federal Reserve’s vote on June 13th to raise its federal fund rate by 25 basis points.
“Feedback from Realtors®, as well as the underlying sales data, reveals that the demand for buying a home is very robust. Listings are typically going under contract in under a month, and instances of multiple offers are increasingly common and pushing prices higher,” states Lawrence Yun, Chief Economist with the National Association of REALTORS® in the April pending sales report. If low supply and swift price growth were not enough of a headwind for the housing market, Yun believes that rising mortgage rates and gas prices could lead to hesitation among some would-be buyers.
Inventory of homes for sale in the Champaign County area declined 11 percent in May to 843 listings from 948 in May 2017. “With inventory levels lagging behind last year’s level, now is the ideal time for sellers to be working with a REALTOR® to get their property on the market. This is the peak season to be listing and selling your home with more buyers scrambling to make their housing transition before the fall months,” said McComb. “Buyers need to remain watchful of new listings and make their offers quickly.”
June is National Homeownership Month. “REALTORS® in Champaign County pledge to continue to lead efforts to ensure that the dream of homeownership is not only possible, but very real for any and all who want to achieve it,” said McComb.
According to the National Association of REALTORS® 2017 Profile of Home Buyers and Sellers, single women are the second most common homebuyer, accounting for 18 percent of homes purchased last year. Single male buyers accounted for only 7 percent of homes, even fewer than unmarried couples who bought 8 percent of homes last year. Married couples make up 65 percent of all home sales
“While month-to-month sales in the last quarter recorded solid gains, the sales volumes were slightly lower than a year ago,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory for the University of Illinois in his June Housing Price statewide forecast for Illinois REALTORS®. “The continued expansion of the economy has certainly helped sustain the housing recovery although rising interest rates and uncertainty about the impact of the current trade war may dampen growth in the rest of 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. Statistics are from residential sales within Champaign County. Data compiled by Midwest Real Estate Data, LLC as available on June 14 2018.
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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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