Home sales in the Champaign County area surged beyond expectations in October, breaking all totals for the month on record in a housing market that has yet to slow down, according to the Champaign County Association of REALTORS®.
A total of 272 home sales were reported in October in the Champaign County area, an increase of 14.77 percent from 237 homes sold in October of 2019. Year-to-date home sales through October of 2020 are on a trajectory to beat 2019 sales totals with 2,613 sales, an increase of 10.44 percent over last year’s totals to-date at 2,366 home sales.
The median home sale price in October for the Champaign County area was $167,250 up 5.19 percent from $159,000 in October of 2019. 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 $188,334 up 8.5 percent from $173,576 in October one year ago.
“Home sales have been booming with double-digit gains in the Champaign County area this October. Thus far this year—we have reported eight of ten months in positive sales territory with demand soaring,” said Liz McDonald, president of the Champaign County Association of REALTORS®. “In October, more closed sales, more new pending sales, higher median and average home sale prices were recorded as compared to October 2019. Buyer activity remains higher than normal for this time of year when we typically start to see a slowdown going into winter months.”
The pending home sales volume in Champaign County continued moving upwards. According to Midwest Real Estate Data LLC, there were 211 pending sales in October, up 30.2 percent pending sales in October of 2019. 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.
The average number of days on the market stood at 82 days, down 3.2 percent from 85 days in October 2019. Inventory of homes for sale dated November 23, 2020 stood at 629 properties on the market.
“With lower housing inventories and higher than normal buyer demand, home sellers will continue to command higher home prices this winter,” said McDonald. “Move-in ready homes tend to be most in demand, especially those that provide extra-space that can double as office space and learning areas. Attractive outdoor areas or an area that provides in-home gym potential are a bonus as more Americans are likely to spend more time at home this winter. “Homes have become more important than ever as buyers seek a place to live, work and play as the coronavirus has led buyers to reassess their housing situations. As mortgage rates dropped to another record low in October, this has helped to offset the monthly mortgage payment increases caused by increases in home prices. While prices often dip a bit in the winter months, continued buyer demand should temper any price retreats this year.”
The average 30-year fixed rate mortgage for the month of October was 2.82 percent, according to the Federal Home Loan Mortgage Corporation, down from 3.69 percent in October 2019 and down from 2.89 percent in September 2020. Freddie Mac reported that the 30-year fixed rate mortgage hit another all-time record low at 2.72 percent for the week ending November 19, 2020.
Nationally, home sales grew for the fifth consecutive month in October to a seasonally adjusted annual rate of 6.85 million—up 4.3 percent from the prior month and 26.6 percent from one year earlier, according to the National Association of REALTORS®.
“The surge in sales in recent months has now offset the spring market losses,” said Dr. Lawrence Yun, chief economist with the National Association of REALTORS®. “With news that a COVID-19 vaccine will soon be available and with mortgage rates projected to hover around 3% in 2021, I expect the market’s growth to continue into 2021.”
Yun forecasts existing home sales to rise by 10% to 6 million in 2021.
