Housing demand remained strong in the Champaign County area in May amid a tight supply of homes for sale as home sale prices continued double-digit appreciation, according to the Champaign County Association of REALTORS®.
CCAR reports that home sales increased 35.04 percent in May to 316 sales, compared to 234 home sales reported in May 2020, considered a low point in sales due to the COVID-19 pandemic. Year-to-date home sales are rallying ahead of last year’s pace with 1,166 sales reported so far this year, up 18.14 percent from 987 sales in 2020 during the same period.
The May median home sale price in the Champaign County area was $192,500, up 12.44 percent from $171,200 in May 2020. The median is a typical market price where half the homes sold for more and half sold for less.
“As the weather warms and pandemic restrictions ease across much of the country, the Champaign County area housing market shows little sign of cooling,” said Liz McDonald, president of the Champaign County Association of REALTORS®. “Robust buyer demand, fueled by low mortgage rates, continue to outpace supply, which remain at historic lows. One positive sign in this month’s report includes an uptick in new listings, which grew by 24.7 percent in the month as sellers who sat tight during the pandemic are looking to cash out and make their own move.”
The average home sale price in May was $216,643, up 12.97 percent from $191,777 in May 2020.
Pending sales remained at a steady pace in May, up slightly at 0.3 percent to 298 from 297 in May 2020, according to the Midwest Real Estate Data, LLC. Pending sales for the month of May reflect the total number of active listings that went under contract and are awaiting a closing usually 30 to 60 days in the future. Inventory of homes for sale as of June 21, 2021 stood at 976 properties on the market down from 984 properties last month. The average number of days on the market for a property was 62 days, down from 87 days in May 2020.
“The May housing market stands in stark contrast to what the market was like a year-ago when real estate transactions dropped considerably during the lock-down period of the COVID-19 pandemic,” said McDonald. “The reopening of the economy appears to be drawing more sellers to the market, although historically low levels of homes for sale are likely to continue for some time.”
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 2.96 percent in May, down from 3.03 percent in April and down from 3.23 percent in May of 2020. The 30-year fixed-rate mortgage rate averaged 2.93 percent with an average of 0.7 percent for the week ending June 17, 2021. Freddie Mac anticipates that mortgage rates will continue to move up with the 30-year fixed rate averaging above three percent through the end of 2021.
“Conditions should remain favorable for the housing market through the end of 2021 as mortgage rates are expected to hover near the 3 percent range,” said McDonald. “While the housing market is expected to remain hyper-competitive in the near-term, we are hopeful more sellers will continue to see this as an opportune time to sell, helping to strengthen inventory levels and variety of housing options.”
According to the National Association of REALTORS’ recently released report by the Rosen Consulting Group, decades of underinvestment and underbuilding have created a shortage of housing in American that is more dire than previously expected and will require a concerted, long-term nationwide commitment to overcome.
The report revealed there is a chronic shortage of affordable and available homes in the housing stock. “There is a strong desire for homeownership across this country, but the lack of supply is preventing too many Americans from achieving that dream,” said Lawrence Yun, NAR’s chief economist.
Realtor.com reports that the need for more space was the top reason driving the decision to purchase a new home in the coming year, according to an online survey of 1,200 home shoppers conducted this spring. Although the majority of today’s buyers are looking for three bedrooms and two baths, their responses indicate they are looking for more flexibility in their home space and affordability in exchange for a shorter commute, the new realities in a post-COVID world. When asking home shoppers which features have become a priority as a result of the pandemic, quiet location (28%), updated kitchen (25%), garage and large backyard (24% each) topped the list. Outdoor living area (20%), space for pets (18%), updated bathrooms (19%), home office and broadband internet capabilities (17% each) and open floor plan (16%) rounded out the top 10 pandemic-induced most desired home features.
“President Biden declared June as National Homeownership Month 2021, recognizing the aspiration to own a home is connected deeply to the American dream,” said McDonald. “CCAR REALTORS® work to support policy and advocacy efforts along with real estate industry partners that advance property ownership among all demographic groups.”
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. Data was compiled by Midwest Real Estate Data, LLC as available on June 14, 2021. The Champaign County Association of REALTORS® is an active participant in promoting equality and inclusion as longtime champions of fair housing with equal access to housing and opportunity for all. CCAR opposes discrimination based on race, color, religion, sex, handicap, familial status, sexual orientation, gender identity, & national origin.
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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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