The Champaign County Association of REALTORS®(CCAR) reports continued gains in both the total number of home sales and the median home sale price for the month of June as compared to the same period a year ago.
CCAR reports there were a total of 391 residential home sales in June, compared to 384 home sales in June 2017, a slight increase of 1.82 percent. In addition, the median home sale price increased 0.99 percent to $167,900 from $166,250 in June of 2017. The median is a typical market price where half the homes sold for more, half sold for less.
The average home sale price for June was $195,479 up 4.94 percent from $186,277 in June of 2017. The total number of new home sales sold through the CCAR MLS through the first six months of this year was 88 sales compared to 43 a year ago, an increase of 105 percent.
Pending home sales underperformed in June in the region. There were 270 pending sales in June, down 2.9 percent from 278 a year ago. Pending sales for the month of June reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.
“The Champaign area housing market most assuredly has seen an active pace this summer and buyer competition is manifesting itself into several quick sales above asking price. We’ve seen a significant number of increased new home sales so far this year as compared to last year that shows expanding housing inventory,” said Max McComb, president of the Champaign County Association of REALTORS®.
“Prices continue to gain traction into positive territory. Sellers are encouraged as the months supply of inventory was down 7.5 percent to 4.2 months. Inventory may be persistently lower in year-over-year comparisons and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing.” Freddie Mac anticipates that mortgage rates will climb to 5.1 percent by this time next year.
The average rate on a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 4.57 percent in June 2018, up from 3.89 percent in June 2017 and down slightly from 4.59 percent in May 2018.
“REALTORS® in most of the country continue to describe their markets as highly competitive and fast moving, but without enough new and existing inventory for sale, activity has essentially stalled,” stated Lawrence Yun, chief economist with the National Association of REALTORS® in the May NAR Pending Home Sales Report. “One encouraging sign has been the increase in new home construction to a 10-year high.” Yun now forecasts for existing-home sales in 2018 to decrease 0.4 percent to 5.49 million – down from 5.51 million in 2017.
Inventory of homes for sale in the Champaign County area in June declined 10.3 percent to 874 listings from 974 in June 2017.
The market is seeing a rise in first time buyers. According to Freddie Mac’s first quarter mortgage data, first-time buyers represented 46 percent of its purchased loans, the largest share in recent history and up from 42 percent a year ago. Looking ahead, there are reasons to be optimistic that more young adults will be diving into homeownership.
“The healthy economy and job market should keep many buyers actively shopping to buy, and any rise in inventory would certainly help them find a home. There’s definitely a pent-up demand for increased household formation driving the market,” said McComb.
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 July 14, 2018.