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Champaign County Area Housing Market Kicks off 2022 with Strong Home Sale Gains

January Home Sales Up Over 12%

           Despite chilly winter temperatures, the Champaign County area residential real estate market kicked off 2022 in hot fashion as strong buyer demand pushed January home sales over 12 percent from a year ago. A total of 173 residential home sales were reported in January in the area as compared to 154 from January 2021, up 12.34 percent.

 The January median home sale price for the Champaign County area stood at $170,000 up 9.58 percent from $155,000 in January a year ago. The median is the typical market price where half the homes sold for more and half sold for less.

            “The housing market started 2022 with vigor as buyers were finalizing their purchasing decisions before interest rates could rise any further. This new year marks a renewed opportunity for buyers but it will not be without its challenges. Inventory of homes for sale continues to remain tight and the market definitely could use an injection of new supply as competition remains fierce,” said Stefanie Pratt, president of the Champaign County Association of REALTORS®. “Sellers may be tempted to hold off until spring, but there are multiple buyers looking for a home right now—so now is the time to really begin the process of working with a REALTOR® who can counsel and guide you through the real estate transaction process.”

            The average home sale price for a home in the Champaign County area for the month of January was $211,860 up 16.44 percent from $181,943 in January 2021.

             Pending sales, a sign of future real estate activity, declined 17 percent in the Champaign County market area in January of 2022 from January a year ago, according to Midwest Real Estate Data LLC. There were 152 pending sales in January as compared to 185 in January a year ago. Pending sales for the month of January 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 dated February 17, 2022 stood at 646 properties on the market, down from last month’s inventory total of 696 properties. It took an average of 47 days to sell a home in January.

            The average rate on a 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 3.44 percent in January 2022, up from 3.10 percent in December and up from 2.73 percent in January of 2021. For the week ending February 17th, the 30-year fixed rate mortgage averaged 3.92 percent, reaching highs not seen since May of 2019.

          "Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers,” said Lawrence Yun, Chief Economist with the National Association of REALTORS®. In the latest NAR Pending Sales Report "The market will likely endure a minor reduction in sales as mortgage rates continue to edge higher.”  With December marking a third straight month of increased home construction, Yun expects housing inventory to continue improving and contribute to slower home price growth in 2022.

          “Rising mortgage interest rates and inflationary pressures will certainly put a strain on housing affordability for some in this market,” indicates Pratt. “However, a number of factors will help keep homeownership in reach for many buyers, including expected income growth and declining unemployment. On the seller’s side, new listings declined by 13 percent in January, most likely due to uncertainties with the omicron virus and economic factors. There are more buyers entering the market every day and it is important for them to have realistic expectations that their home search may take longer than anticipated with lower inventory levels. The start of the spring housing market begins in March and with it brings optimism that additional sellers will be ready to enter the market.”

           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 January 14, 2022. 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.

Friday, February 18, 2022/Categories: News Releases