Real Estate Market

Champaign/Urbana Market Update: December 2017

Local Housing Market Report

Note: October data below is the most recent published by the National Association of Realtors®.

 

Data from the National Association of Realtors® (NAR) shows sales of existing homes grew in October to the briskest pace since early summer, but an ongoing lack of supply resulted in fewer closings for a second straight month.

 

Nationally, total sales of existing homes (counts completed transactions for single-family homes, townhomes, condominiums and co-ops) bumped up 2.0% to 5.48 million in October from 5.37 million in September. Despite the uptick in velocity, sales remain 0.9% lower than one year ago.

 

Existing Home Sales By Region

 

NAR's chief economist, Lawrence Yun, indicated that October's sales activity picked up for the second consecutive month, with increases across all four major regions. "Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home" Yun said. He added that "While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated."

 

Housing Data Takeaways

  • The median existing-home price (all housing types) in October was $247,000, up 5.5% from October 2016 ($234,100). October's price increase marks 68th months in a row of year-over-year gains.

  • On average U.S. properties stayed on the market for 34 days in October, unchanged from September and down from 41 days a year ago. Forty-seven percent of homes sold in October were on the market for less than a month.

  • Mortgage data from Freddie Mac shows the average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.90% in October  from 3.81% in September. For all of 2016, the average commitment rate was 3.65%.

  • Nationally, first-time buyers drove 32% of October's sales, up from 29% in September but a drop from 33% one year ago.

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Champaign Housing Market Statistics

Median Home Price: $192,400

3 Bedrooms/2 Bathrooms

Average Square Footage: 1,672

Price per Square Foot:  $104

Number of Homes on the Market: 376

 

Tips to Winterize Your Champaign/Urbana Home!

The winter season is upon us in Champaign/Urbana! Keep your family warm and toasty all winter long in your home! Winterize your home by following these simple tips and see your energy costs lower with the temperature outside!

 

  • Install an Energy Monitor to discover where and how your home uses the most energy.

  • Use a Window Insulation Kit to add an additional buffer against cold air.

  • Dodge the Drafts by caulking and weatherstripping around drafty doors and windows.

  • Install Storm Doors and Windows for added energy efficiency.

  • Change Furnace Filters to increase airflow and keep your family healthy all season.

  • Clean and Adjust Your Heating System to help lower your energy costs and keep it working properly.

  • Upgrade to an Efficient Furnace that will reduce your heating costs for many years to come and increase your home's value.

  • Adjust Your Thermostat anytime you leave the house and do not need to use as much heat

  • Insulate Your Pipes to cut back on hot water costs and avoid burst pipes.

  • Add Insulation between walls, on the basement ceiling, and the attic floor to help heat remain in your home.

Investing in Real Estate

Today's low interest rates and stabilized home prices have created some great investment opportunities!

 

Investing in real estate has unique advantages over other types of investments. Of course, wise investors may have various instruments in their portfolio, but real estate has a long-term track record of proving its worth.

 

Here are some of real estate investing's advantages:

 

  • Interest in mortgage loans are tax-deductible. Investors can lower their tax liability while increasing their equity.

  • Renters pay down your mortgage loan. Investors reap the benefits of rental income, which offsets your mortgage cost and build equity.

  • Real Estate values increase over the long term. Real Estate is limited and will always be in demand.

  • 1031 exchanges are available to defer taxable income when you are ready to sell.

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Many investors are taking advantage of these great market conditions. Have questions? Give us a call. We are happy to help!