PRESS RELEASE-Champaign County residential home sales and median home sale prices remained sluggish in June as compared to a year ago while inventory tightened, according to the Champaign County Association of REALTORS®. CCAR reports a total of 340 home sales were reported in June, comparable to 391 sales a year ago.
The median home sale price in June for the Champaign County area was $163,500 down 2.39 percent from $167,900 in June of 2018. The median is a typical market price where half the homes sold for more, half for less.
The average home sale price in June for the Champaign County area was $189,427, a 2.89 percent decrease from $195,064 in June of 2018.
Year-to-date home sales for the entire Champaign County area through June of 2019 totaled 1,368, down 8 percent from 1,487 in June of 2018.
“Tighter inventory continues to put a damper on the overall growth of home sale market activity. With a shortage of homes in the low to mid-level price ranges, that may mean a longer search for first-time buyers. In reviewing overall June data, the number of days it took to sell a home is decreasing which indicates peaked interest in homebuying,” indicates Eric Porter, president of the Champaign County Association of REALTORS®. “Mortgage rates have dipped below four percent and there is potential they may drop even further if the Federal Reserve takes action to lower rates again this year. Buying a home at this low rate means consumers can most likely afford more than they expected.”
Inventory remains tight across the region as there were 815 residential homes on the market in June, down 7.3 percent from 879 a year ago. New listings were down 19.7 percent to 285 homes as compared to 355 last year.
The number of days on market held steady at 86 days in June, the same as last year.
The average rate for a 30-year fixed rate mortgage, according to the Federal Home Loan Mortgage Corporation (Freddie Mac) was 3.80 percent, down from 4.57 percent in June of 2018 and down from 4.05 percent in May 2019. For the week ending July 18th, the average 30-year fixed rate mortgage moved up to 3.81 percent after three weeks of holding steady.
National Association of REALTORS® Chief Economist Lawrence Yun is optimistic about positive growth in market activity. In the NAR May Pending Home Sales report, he indicated consumer confidence about home buying has risen and expects more activity in the coming months. “The Federal Reserve may cut interest rates one more time this year, but there is no guarantee mortgage rates will fall from these already historically low points,” Yun said. “Job creation and a rise in inventory will nonetheless drive more buyers to enter the market.”
“We are optimistic that the second half of 2019 will drive a stronger market fueled by low mortgage rates, consumer confidence and strong labor market conditions,” said Porter. “There is a need for more inventory on the market and this is especially great news for sellers who have put off getting their homes on the market and who may be wanting to make their own move. Eager buyers are out there looking for the right property and we are starting to see more competitive bidding in the market for current listings as inventory is straining to keep pace in the most competitive price ranges.”
A separate report from the National Association of REALTORS indicates a decline in global growth and low housing inventory contributed to a drop in foreign investment in U.S. residential real estate over the past year. NAR’s Profile of International Transactions in U.S. Residential Real Estate 2019 revealed that foreign buyers purchased $77.9 billion worth of U.S. existing homes from the 2019 survey reference period (April 2018 through March 2019), a 36% decline from the level reached in the previous 12 months ($121 billion).
