With the first half of the year reporting impressive home sale gains, the Champaign County area June housing data showed signs of sales tempering even as price appreciation continues to grow, according to the Champaign County Association of REALTORS®.
Closed residential home sales in June 2021 totaled 386, up slightly (0.26 percent) from 385 in June 2020. Homes sold on an average of just 31 days in June 2021, compared to 87 days in June 2020. Year-to-date home sales continue to push ahead of last year’s pace with 1,557 sales reported so far this year, up 13.48 percent from 1,372 in 2020 during the same period.
The June median home sale price in the Champaign County area was $184,950, up 5.69 percent from $175,000 in June 2020. The median is a typical market price where half the homes sold for more and half sold for less.
“Lack of inventory continues to be an overwhelming factor that is currently slowing sales activity, as price pressures have sidelined some house hunters who are waiting for more inventory to come to market. Our local housing market continues to remain extremely competitive as strong demand and weakened supply continues to affect overall affordability conditions, especially for entry level buyers,” said Liz McDonald, president of the Champaign County Association of REALTORS®. “We expect these market trends to continue through the summer into the fall.”
The average home sale price in June was $216,803, up 6.93 percent from $200,891 in June 2020.
Pending home sales declined slightly in June, down 6.5 percent to 288 from 308 in June 2020, according to the Midwest Real Estate Data, LLC. Pending sales for the month of June reflect the total number of active listings that went under contract and are awaiting a closing usually 30 to 60 days in the future. June is the first time pending sales have declined in 15 months.
Inventory of homes for sale as of July 21, 2021 stood at 951 properties on the market down from 976 properties last month. The number of new listings grew by 4.7 percent in June over June of 2020.
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 2.96 percent in June, down from 3.16 percent in June of 2020 and even with the 2.96 percent in May of 2021. The 30-year fixed-rate mortgage averaged 2.88 for the week ending July 15, 2021, down for the third consecutive week.
“Looking forward, there remains a pipeline full of interested buyers who may have paused their home search from earlier in the year or have been outbid in this competitive market, but still remain active in their home search hunt,” said McDonald. “The housing market will have to continue to see a lot more gains in inventory over a longer period of time before the market reaches a more balanced state of equilibrium.”
According to realtor.com, the shortage of affordable housing inventory nationwide forced more prospective homebuyers into the rental market in June. The U.S. median rent is now $118 more than it was two years ago.
“Renting does not offer the long-term investment like homeownership does like building your own wealth and locking in your monthly payment,” indicates McDonald. “The majority of consumers believe they need at least 20 percent down to purchase a home, but the average downpayment averages near 12% or less according to the National Association of REALTORS®.”
Although there has been a series of obstacles over the last year, including an unprecedented pandemic, record-high prices and all-time low inventory, buyers are still lining up at a feverish pace, said Lawrence Yun, in the recent National Association of REALTORS pending home sales report.
"While these hurdles have contributed to pricing out some would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases,” Yun said. "More market listings will appear in the second half of 2021, in part from the winding down of the federal mortgage forbearance program and from more home building.”
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 July 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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