Champaign County home sales hit 10-year high

Champaign County home sales hit 10-year high

CHAMPAIGN — Champaign County home sales topped 3,000 in 2016 for the first time in a decade, increasing 8.23 percent from a year earlier.

Total home sales rose from 2,782 in 2015 to 3,011 in 2016, according to the Champaign County Association of Realtors. That's slightly less than the 3,074 that were sold in 2006.

"I'm very happy with how 2016 went," agency President Jim Waller said.

Every region in the county saw an increase in sales compared with 2015.

—The Champaign/Savoy area saw the biggest gains, with sales up 11.6 percent to 1,387.

— The West region, which includes Mahomet, increased 11.0 percent to 485 sales.

— The East region, which includes St. Joseph and Ogden, increased 9.4 percent to 186 sales.

— Urbana sales were up 4.3 percent to 490.

— In the South region, sales jumped 3.5 percent from 2015, to 269.

Waller credits the surge to the expanding Champaign-Urbana economy and the increasing number of baby boomers considering retiring in Champaign-Urbana.

"Baby boomers are expected to make up nearly one-third of all buyers in 2017," he said.

While home sales increased on the year, December sales dropped. In December 2015, 235 homes were sold — 19 more than in December 2016.

Waller said he's not sure why this happened, especially since November home sales increased with expectations of rising mortgage rates.

Those rates are expected to continue to go up in 2017, though remain relatively low.

The average mortgage rate in December was 4.22 percent, up from 3.77 in November and 3.85 last December.

Mortgage rates are expected to reach about 4.6 percent, according to National Association of Realtors economist Lawrence Yun.

The median home sale price in Champaign County last year rose just $1,000, to $146,000.

Statewide, median prices are expected to grow in 2017, rising to $183,914, projects Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois.

For homes priced under $400,000, Waller is seeing more of a sellers' market, with four months of supply, while there is 81/2 months of supply of homes priced over $400,000, creating a buyers' market.

"Homes under $400,000 are performing better than the luxury segment," Waller said. "That's not necessarily a concern. More younger people are coming into the market, and they're not buying homes over $400,000."

Sold!

Not since 2006 has the Champaign County Association of Realtors reported better year-end home sales than it did in 2016:

Year Homes sold
2016 3,011
2015 2,762
2014 2,674
2013 2,599
2012            2,385
2011 1,967
2010 2,026
2009 2,305
2008 2,274
2007 2,929
2006 3,074

 

Sections (3):News, Local, Business
Topics (2):Economy, Housing

Comments

News-Gazette.com embraces discussion of both community and world issues. We welcome you to contribute your ideas, opinions and comments, but we ask that you avoid personal attacks, vulgarity and hate speech. We reserve the right to remove any comment at our discretion, and we will block repeat offenders' accounts. To post comments, you must first be a registered user, and your username will appear with any comment you post. Happy posting.

Login or register to post comments