Summer housing market heats up as home sales and prices go up in July

News

CHAMPAIGN COUNTY, Ill. (WCIA) – According to the Champaign County Association of Realtors (CCAR), home sales in July have reached 14-year record high.

CCAR officials said closed residential home sales in the last month totaled 388, up to 6.01 percent from 366 in July 2020. Homes continue to be sold quickly within an average of 30 days compared to 80 days in July 2020. Year-to-date home sales also advance ahead of last year’s pace with 1,945 sales for the first seven months of the year. This is up 11.91 percent from 1,738 in 2020 during the same period.

The average home sale price in July was $213,977, up to 7.76 percent from $198,569 in July 2020, according to CCAR statistics.

“While other areas of the country are starting to see softening demand in the housing market, Champaign County area home sale activity continues to remain robust; above the stellar pace at this time last year. This July sales activity marks a 14-year high for listings sold within the month of July, topping last year’s sales that also included a surge in pandemic-delayed home closings,” said president of the Champaign County Association of Realtors Liz McDonald.

CCAR officials said inventory of home for sales as of August 20 stood at 945 properties on the market. That is down from 951 properties last month.

“The fast spreading delta variant could be a wild card in the housing market over the next few months. That could lead to some economic uncertainty that could cause some homeowners to delay acting on selling their home, which could put more pressure on the inventory shortage that already exists,” said McDonald.

“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022,” said NAR chief economist Lawrence Yun. “In the last year, increasing home prices have translated into a substantial wealth gain of $45,000 for a typical homeowner. These gains are expected to moderate to around $10,000-$20,000 over the next year.” 

Yun anticipates that the 30-year fixed mortgage rate will go up with an average of 3.6 percent in 2022.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.