Champaign County area home sales sold quickly in October as demand for residential homes continued on the upswing, reports the Champaign County Association of REALTORS®. Home sales in the Champaign County area reached a record high for the month of October.
A total of 286 residential home sales were reported in October in the Champaign County area, up 4.38 percent over 274 homes sold in October of 2020. Year-to-date sales through October of 2021 are on track to end the year ahead of last year’s total number as sales are up 8.49 percent ahead of 2020 totals.
The average number of days on the market continues to decline and was reported at 34 days in October. Inventory of homes for sale dated November 22, 2021 stood at 766 properties on the market, down from last month’s inventory total of 840 properties. New listings increased 5.2 percent in October over the same period in 2020.
The median home sale price in October for the Champaign County area was $165,000, down 1.35 percent from $167,250 in October of 2020. The median is a typical market price where half the homes sold for more and half for less.
The average home sale price in October was $207,714 up 11.47 percent from $188,127 in October one year ago.
“October sales were the highest on record for the month according to our Multiple Listing Service. Mortgage rates are hovering around 3 percent at this time and this is good news for buyers entering the market; although expectations are rates should continue to move upwards in the next few months,” said Stefanie Pratt, president of the Champaign County Association of REALTORS®. “As buyers race against the clock to beat higher mortgage rates, we expect inventory levels to continue to remain tight through the remainder of this year. Projections are 30-year fixed mortgage rates will reach 3.7 percent in 2022, and that will factor into affordability conditions for buyers.”
The pending home sales volume in Champaign County declined by 9.8 percent in October to 194 sales from 215 sales in October 2020, according to Midwest Real Estate Data LLC. Pending sales for the month of October reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.
“As the year begins winding down, the feverish pace of home sales continues to hit records in the Champaign County market area, buoyed by strong demand, low interest rates and a slight uptick in new listings,” said Pratt. “Overall, the number of homes for sale continues to lag behind last year’s level, reflecting the mismatch of strong buyer demand and tightened seller activity levels. We are hopeful that we will see a greater balance of inventory levels in the coming months as more sellers ready their homes this winter to place on the market.
According to the National Association of REALTORS® 2021 Profile of Home Buyers and Sellers, the typical first-time buyer is 33 years old. The report revealed the key factor for moving was the desire to live closer to family and friends, while the equally important motivator was the need for more space or a bigger home. As a result, home buyers typically bought their homes for 100% of the seller’s asking price with another 35% purchasing their home for beyond the asking price.
The average 30-year fixed rate mortgage for the month of October was 3.07 percent, according to the Federal Home Loan Mortgage Corporation up from 2.90 percent in September and up from 2.82 percent in October 2020. The 30-year fixed rate mortgage creased to 3.10 percent for the week ending November 18th.
According to Dr. Lawrence Yun, chief economist with the National Association of REALTORS®, home sales are the best they have been in 15 years. “We are only in the first innings of work-from-home options,” said Yun.” People have not fully digested the work from home flexibility model yet in determining home size and locational choice.” Yun anticipates there may be a decline in sales in 2022, but he forecasts home sales will outdo pre-pandemic levels.
Statewide home sales (including single-family homes and condominiums) in October 2021 totaled 15,920 homes sold, down 11.0 percent from 17,889 in October 2020.
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 November 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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