Champaign County Area home sales continued to sell at a fast clip in April recording another strong sales month for the area while prices remain on the upswing, according to the Champaign County Association of REALTORS@.
According to CCAR reports, there were 272 home sales reported in April up 3.42 percent from 263 sales reported in April 2020. Year-to-date home sales through April totaled 848 sales, up 12.62 percent compared to 753 sales from April a year ago.
The April median home sale price in the Champaign County area was $170,500, up 7.57 percent from $158,500 in April 2020. The median is a typical market price where half the homes sold for more and half sold for less.
“April home sales continued at a fast pace as buyers compete for a reduction of properties on the market as compared to last year,” said Liz McDonald, President of the Champaign County Association of REALTORS®. “During this busy spring market, multiple offer situations are even driving sale prices above the asking price. With strong buyer demand and limited housing supply showing no signs of easing soon, this points to an extension of this market trend through the summer months.”
The average home sale price in April was $192,509 up 6.14 percent from $181,379 in April 2020.
There were 292 pending home sales reported in April, up 18.7 percent from 246 pending sales in April 2020, according to the Midwest Real Estate Data, LLC. Pending sales for the month of April 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 as of May 20, 2021 stood at 984 properties on the market up from 905 properties in April. The average number of days on the market for a property was 63 days, down from 104 days in April 2020.
According to a recent realtor.com survey, one in ten homeowners plan to sell this year with 63 percent of those looking to list in the next six months. Accordingly, close to two thirds of those sellers plan to list their homes at prices under $350,000, offering a tremendous boost for first-time buyers.
“The demand for existing housing remains high for now, while construction of new homes has slowed as builders struggle with shortages of labor and construction materials,” said McDonald. “Sellers today really should not be too worried about doing considerable updates to their home before placing it on the market. Buyers out there are eager to just get into a home and customize it to their own liking.”
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 3.03 percent in April, down from 3.3 percent in April 2020 and down from 3.08 percent in March of 2021. The 30-year fixed-rate mortgage increased to 3.0 percent with an average 0.6 point for the week ending May 20, 2021.
With the number of vaccinated Americans increasing and new coronavirus cases on the decline, NAR Chief Economist Lawrence Yun anticipates the economy will grow 4.5 percent in 2021 and estimates the 30-year fixed mortgage rate will increase to 3.2 percent in 2021. “As mortgage rates increase, the frenzied multiple-offer situation will become less prevalent by year’s end, as affordability challenges squeeze out some buyers and more inventory reaches the market,” Yun said during the 2021 REALTORS® Legislative Meetings and Trade Expo at the Residential Economic Issues and Trends Forum on May 13th. “ Virtually every metro area—99%–nationwide tracked by the National Association of REALTORS® recorded year-over-year price increases in the first quarter of 2021.
As the state starts to reopen fully, McDonald reports homeowners who held off selling during the pandemic are starting to return to the market and this should transcend into relaxing inventory levels and moderating prices bringing more balance to the market.
“If sellers feel confident they have somewhere to move they will be more inclined to list their property. Some sellers are negotiating with buyers to remain in their home for a certain period of time in order to allow them some time to find their next home,” said McDonald. “We must keep a watchful eye on inflationary conditions which may push interest rates higher. Higher mortgage rates could slow the pace of home sales and price growth, but the expectations are that housing market activity will continue to remain healthy.”
