Residential homes in the Champaign County area sold quicker in June and the median and average home sale price continued to gain traction despite home sales slowing due to rising inflation and increased mortgage interest rates, according to the Champaign County Association of REALTORS®.
CCAR reports that home sales declined by 15.94 percent in June to 327 sales from 389 sales reported in June 2021. Year-to-date home sales are down 8.78 percent to 1,423 sales from the totals year-to-date sales of 1,560 through June of 2021.
The June median home sale price in the Champaign County area was $210,000 up 13.57 percent from $184,900 in June of 2021. The median is a typical market price where half the homes sold for more and half sold for less.
The average home sale price was $251,604 in June up from $216,293 in June 2021.
The average number of days on the market in June was 19 days as compared to 32 days in June last year. Inventory of homes for sale as of July 19, 2022 stood at 901 properties on the market up from 848 properties listed for sale last month.
“While the overall market is transitioning due to economic factors, there are still many buyers out there searching for homes and are eager to lock in mortgage rates before they rise further,” said Stefanie Pratt, President of the Champaign County Association of REALTORS®. “Homes priced appropriately in our market area are selling very quickly as buyers continue to snatch up homes at a near-record fast pace. While all real estate is local, all housing markets now are dealing with similar factors including higher rates of inflation, higher mortgage rates and supply issues. Until there is a break in those influencers, we will see softening in the housing market.”
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 5.52 percent in June, up from 5.23 percent in May 2022 and up from 2.93 percent in June 2021. According to Freddie Mac, for the week ending July 14, the average 30-year fixed rate mortgage averaged 5.51 percent, a year ago at this time the rate was 2.88 percent.
“Both the median and average home sale prices in the Champaign County area rose by double-digits in June as competition for homes on the market continues. We should see the rate of appreciation of home sale prices begin to slow by the end of summer as the peak buying season of summer comes to a close and as the housing supply slowly starts improving,” said Pratt.
“First-time buyers are now grappling with an affordability crunch due to higher inflation and some may have difficulty finding homes that fit within their budget with higher mortgage rates impacting their overall monthly house payment until more inventory reaches the market. As fixed-rate mortgage rates rise, some buyers may be looking at an adjustable-rate mortgage instead, especially if they plan to sell or refinance in the next five years; it may be a better option for them.”
Inflation continues its upward movement “The Consumer Price Inflation is the highest in over 40 years and showed no signs of slowing down in June,” said Lawrence Yun, Chief Economist with the National Association of REALTORS®. “It rose by 9.1% and is accelerating. The Fed may be forced to raise interest rates even more aggressively than planned, even with a rising possibility of a recession on the horizon.”
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, 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.
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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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