The real estate market in Champaign County is encountering a significant contraction in home inventory and a corresponding surge in prices, according to the latest data from the Champaign County Association of REALTORS® (CCAR). With the spring season underway, it appears to be an advantageous period for sellers.
During the first quarter of 2024, home sales in the area were down 4.5 percent compared to the same period last year. In March alone, the decline was even steeper with a 17.1 percent drop in sales, translating to 176 units sold compared to 209 in March of the previous year. This trend is reflective of a broader state-wide downturn in home sales, which fell by 11.9 percent.
Despite the reduction in sales, home prices continue to climb. The median home sale price in March rose by 10 percent to $192,500, while the average price soared by 17 percent to $242,445, up from $207,042 a year earlier.
The inventory of available homes as of April 21, 2024, stood at 635 properties, marking a decrease from 649 the previous month and a significant drop from 825 two years ago — a 30 percent reduction.
Jim Waller, president of CCAR, noted the tightening market conditions. “With shrinking inventory levels, this spring is poised to be another competitive market with strong competition among buyers for properties,” he said. Waller emphasized the benefits for sellers listing in the current high-demand season, noting that well-presented homes are likely to receive multiple offers, often above the asking price.
The number of new listings in March also declined by 23 percent year-over-year, with 188 new properties on the market compared to 245 last year. Pending home sales dropped by 6.5 percent to 200, down from 214 in March 2023.
Mortgage rates are also on the rise, with the average rate on a 30-year fixed mortgage reaching 6.82 percent in March, up from 6.54 percent a year earlier. As of mid-April, the rate edged up to 6.88 percent, marking the first weekly gain of the year.
Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, noted a cautious consumer outlook on mortgage rates, which may be reacting to their recent upward trend. Despite this, he observed a slow upward drift in sentiment on whether it’s a good time to buy or sell.
As the market dynamics continue to evolve, potential buyers and sellers in Champaign County are navigating a challenging landscape marked by limited inventory and rising costs.
