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Champaign County Home Sales Increase Slightly in August

While prices continue to tick upwards

While Champaign County area home sales rose just under one percent in August from a year ago, total year-to-date home sales are up 10 percent, according to the Champaign County Association of REALTORS®.

Closed residential home sales in August 2021 totaled 328, up 0.92 percent from 325 in August 2020. The number of days a home was on the market continued to shrink, averaging 31 days compared to 75 days in August 2020. Year-to-date home sales for the Champaign County area totaled 2,278 through August of this year ahead of year-to-date total at 2,063 home sales.

The August median home sale price in the Champaign County area was $185,000 up 8.89 percent from $169,900 in August of 2020. The median is a typical market price where half the homes sold for more and half sold for less.

“We are seeing a seasonal settling down of home sales which is not untypical for this time of year, but Champaign County area home sales continue to remain in positive territory,” said Liz McDonald, president of the Champaign County Association of REALTORS®.  “Home sales have been on a positive ride for the past 15 months, and prices have continued to gain traction as a result of shrinking inventory levels. For sellers, accurate pricing is especially critical this fall. When a home is priced appropriately, potential buyers may bring extra money to the table to make sure they land their home purchase.”

Pending home sales declined just 0.9 percent to 225 in August from 227 in August of 2020, according to the Midwest Real Estate Data, LLC. Pending sales for the month of August reflect the total number of active listings that went under control and are awaiting closing usually 30 to 60 days in the future.

The average home sale price in August was $216,500 up 13.39 percent from $190,531 in August 2020.

“With homes selling so quickly, it is important for buyers to work with a REALTOR® who is staying on top of new listing inventory, especially if they want to find the right home,” said McDonald. “First-time buyers who sat out in the highly competitive summer months may see less competition now. Mortgage rates are projected to stay consistently low and that will work to their advantage from an affordability standpoint.”

REALTOR.com released its “School Year 2021” report that takes a look at the best college towns to buy a home for any stage of life from starting a career to raising a family, to forever homes for living out the golden years. The report indicated, “owning a home in a college town is also often a smart investment as there will always be strong, steady demand from both young and older buyers as well as rental opportunities for those interested in becoming landlords.”

First on the list of college towns for young adults is Champaign, Illinois. To come up with the list, realtor.com looked at nearly 200 cities with at least 10,000 residents where undergraduates make up 20% of the population.

“They’re generally steady economies that have less ups and downs,” says Mark Zandi, chief economist at Moody’s Analytics. College towns “make very attractive places to live for people who want a more affordable, low-key lifestyle. In many cases, there are reasonably good school districts and lots of different housing choices.”

“Many recent grads of the University of Illinois chose to remain within our community as many launch their careers here and stay because it offers a progressive, vibrant culture and amenities as well as attractive starter home prices,” said McDonald. “As well, we have had a consistent stream of investors who see our market area as an opportunity for a smart investment for rental property.”

Inventory of homes for sales as of September 21, 2021 stood at 866 properties on the market down from 945 properties last month. The number of new listings also declined 11.5 percent in August over August of 2020.

“The pandemic has shifted priorities for a lot of homebuyers as remote workers sought out more space and as homes are being used for a greater number of activities as well as for entertainment,” said McDonald. “Buyers are definitely looking for greater flexibility in design with their home purchases.”

The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 2.84 percent in August, down from 2.93 percent in August of 2020 and even at 2.84 percent in July 2021. The 30-year fixed rate mortgage averaged 2.86 percent for the week ending September 16, 2021.

 "The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers," said Lawrence Yun, National Association of REALTORS® chief economist in the NAR July pending home sales report. "That said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months.”

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 September 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.

Wednesday, September 22, 2021/Categories: News Releases