Champaign County area residential home sales continued at a robust pace in November, driven by strong buyer demand registering in above pre-pandemic levels even as sales dipped from the same month one year ago, according to the Champaign County Association of REALTORS®.
A total of 229 residential home sales were reported in the Champaign County area in November, down 4.98 percent from 241 homes sold in November 2020. Year-to-date home sales through November of 2021 are up 7.53 percent from a year ago.
The average number of days on the market was 34 days. Inventory of homes for sales dated December 21, 2021 stood at 696 properties on the market, down from last month’s inventory total of 766 properties.
The median home sale price in November for the Champaign County area was $173,000 off by 1.14 percent from $175,000 in November 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 November was $204,214 down 0.81 percent from $205,875 in November of 2020.
“Although the market is not moving at as frenzied pace as earlier this year, buyer demand is still very high, bolstered by attractive mortgage rates and a lower supply of inventory. Despite the slowdown experienced this November, the market is still outperforming the pre-pandemic markets of 2018 and 2019 and this year’s market is on track to be the best annual home sales market in the past 15 years,” said Stefanie Pratt, president of the Champaign County Association of REALTORS®. “Slower sales activity and price growth means a typical seasonal pattern and more normalization of what we might expect this time of year in terms of sales activity.”
The pending home sales volume in Champaign County increased 0.5 percent to 204 home sales from 203 sales in November of 2020, according to the Midwest Real Estate Data LLC. Pending sales for the month of November reflect the total number of active listings that went under contract and are awaiting closing, usually 30 to 60 days in the future.
“All indications are this winter should be unseasonably hot for the housing market with strong momentum in home sales activity; albeit any future dramatic shifting in economic and inflationary trends and the coronavirus variant wildcard,” said Pratt. “Right now, buyers may feel rushed to try to qualify for historically low mortgage rates ahead of any more increases, and as such this holiday season is not one to slow down on that home sale search. The Federal Reserve has announced plans for multiple rate increases in 2022, so the days of mortgage rates this low may soon be nearing an end. The National Association of REALTORS® forecasts that the 30-year fixed mortgage rate will increase to 3.50 percent by the middle of 2022.”
The average 30-year fixed rate mortgage for the month of November was 3.06 percent, according to the Federal Home Loan Mortgage Corporation down from 3.07 percent in October and up from 2.76 percent in November 2020. The 30-year fixed rate mortgage increased to 3.12 percent for the week ending December 16, 2021.
“Home sales remain resilient, despite low inventory and increasing affordability challenges, said Lawrence Yun, National Association of REALTORS® chief economist. “Inflationary pressures such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.” Yun expects home prices to increase at a “gentler pace” over the next several months.
According to the University of Illinois Regional Economics Applications Laboratory 2022 Housing price Forecast for the Illinois REALTORS®, median prices in 2022 are forecasted to grow continuously within a lower and narrower range compared with 2021. On a year-to-year basis, these gains will range from 2.0% to 7.9% for Illinois and 1.4% to 7.7% for the Chicago PMSA.
“The market is sending mixed signals, with positive growth expected in prices but considerable variance in sales” noted Daniel McMillen, Head of the UIC Stuart Handler Department of Real Estate. “Affordability, limited inventory, and possibly declines in consumer confidence dampen demand while low interest rates continue to make ownership attractive. The net effect of these forces is reflected in a market that is difficult to forecast.”
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 December 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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