Homes sales in Champaign County took a sharp decline in May 2020, according to a Champaign County Association of REALTORS® release.
A total of 234 residential homes were sold in May, down 30.97 percent from 339 sales in May 2019. The median home sale price in May for the Champaign County area was $171,200, up 14.13 percent from $150,000 in May 2019.
“As anticipated, May took the full brunt of the coronavirus as a lot of the home sales reported actually went under contract in April when the state was under strict lockdown due to the pandemic,” said Julie Roth, president of the Champaign County Association of REALTORS®.
According to Midwest Real Estate Data LLC, during May there were 295 pending sales reported in Champaign County, up 13 percent from 261 pending sales in May of 2019.
A housing shortage that rolled in with 2020 continues on as buyers appear more eager to re-enter the housing market than sellers.
“We think this is only a temporary situation as many homeowners were engaged in home remodeling during the stay-at-home period and are preparing their homes to get ready to sell when the time is right for them,” Roth said.
CCAR also believes that a low mortgage rates will be a factor for buyers moving forward.
The average 30-year fixed rate mortgage according to the Federal Home Loan Mortgage Corporation was 3.23 percent in May, down from 3.3 percent in April of this year and down from 4.14 percent in May of 2019. According to Freddie Mac, the 30-year fixed rate mortgage dropped to the lowest rate in its survey history to 3.13 percent for the week ending June 18th. Freddie Mac predicts the average 30-year fixed rate mortgage is expected to be 3.4 percent in 2020 and 3.2 percent in 2021.
“Record-low mortgage rates are likely to remain in place for the rest of the year, and will be the key factor driving housing demand as state economies steadily open,” Lawrence Yun, chief economist for the National Association of REALTORS® said. “Still, more listings and increased home construction will be needed to tame price growth.”
In May 2020, the average home sale price increased from $174,817 in May 2019 a 9.71 percent increase.
Year-to-date home sales for 2020 through the month of May stood at 987, off 3.89 percent from 1,027 home sales during the same period one year ago.
