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Champaign County Area Home Sales Stumble in April

Summer Home Sales Expected to Get Stronger

       Champaign County Area home sales dropped in April as softer buyer demand continued to challenge the market, according to the Champaign County Association of REALTORS®. Average home sale prices moved slightly higher as new listings and inventory on the market decreased.

          CCAR reports a total of 231 residential homes were sold in April, down 14.31 percent from 269 home sales in April of 2018.

          The median home sale price in April for the Champaign County area was $149,500, down 9.9 percent from $151,000 in April of 2018. The median is a typical market price where half the homes sold for more, half for less.

          The average home sale price in April was $178,815, up 5.08 percent from $170,164 in April one year ago.

                “In reviewing home sales data for the month, the average time it took to sell a home continued to decrease as buyers took advantage of available inventory on the market,” said Eric Porter, president of the Champaign County Association of REALTORS. “Home sales in the coming months may fare better, indicative of the rise in the pending sales volume for April. We should see consistent home sales through the summer months.”

          There were 314 pending sales reported in April as compared to 291 a year ago, representing a 7.9 percent increase. Pending sales for the month of April 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 4.14 percent in April 2019, down from 4.46 percent in April 2018 and down from 4.26 percent in March of this year. The 30-year fixed rate mortgage for the week ending May 16th dropped to 4.07 percent. Freddie Mac expects the 30-year fixed rate mortgage to average 4.3 percent for 2019 below last year’s average of 4.5 percent. According to Freddie Mac’s May Housing Market Forecast, steady housing market growth is expected due to the impact of low mortgage rates, a strong labor market, low unemployment and modest wage growth.

          The National Association of REALTORS released its midyear forecast last week revealing continued economic expansion, rising home sales and an increase in wage growth on par with home price growth.

          “Home sales should be much stronger based on the economic fundamentals of jobs, interest rates, population and consumer confidence,” said Lawrence Yun, chief economist of the National Association of REALTORS®. “With strong job creation, wages are growing at a faster pace. Finally, wages and home prices are aligning.” Yun predicts new home sales to rise 6 percent nationally in 2019 to 667,000 sales while existing home sales should remain about even with last year’s pace at 5.3 million.

          “The Champaign County market area continues to see solid job growth while housing inventory is straining to keep pace in the most competitive price ranges right now. Tight supplies are a statewide and nationwide issue. More supply is needed to widen the inventory choices for consumers,” said Porter. “Attractive mortgage rates hovering near 4 percent continue to be an attractive incentive for buyers in search of listings that meet their prerequisites.”

          A delegation of CCAR REALTORS® joined more than 9,000 REALTORS® from across the country in the nation’s capital last week for the 2019 REALTORS® Legislative Meetings and Trade Expo. REALTORS® remain committed to continuing their work with Congress and the administration to advance policy initiatives that strengthen the ability of Americans to buy, invest, own and sell commercial and residential real estate. REALTORS® met with members of Congress and regulatory agency officials advocating support for several important legislative initiatives.

          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 the Champaign County area. Data compiled by Midwest Real Estate Data, LLC as available on May 14, 2019.

Tuesday, May 21, 2019/Categories: News Releases