January 2025 Market Update

This update is based upon information supplied by the Champaign County Association of REALTORS Multiple Listing Service for all attached and detached single-family properties in Champaign, Savoy or Urbana. It is important to keep in mind that specific segments of the market may have performed better or worse than the overall market analyzed below.

Year over year Analysis

For the most recent twelve months (01/01/2024-12/31/2024) the MLS reported 1,559 sales with a median sale price of $230,000 and a reported average marketing time of 33 days. For the prior twelve months (01/01/2023-12/31/2023) the MLS reported 1,629 sales with a median sale price of $211,000 and a reported average marketing time of 29 days.  This shows a year-over-year decrease in the number of sales of 70 homes or -4.3%. The median sale prices saw a 9.0% increase year-over-year. There are currently 137 homes on the market with an average marketing time of 124 days. This results in a 1.1-month supply of homes in inventory, which is a significant shortage relative to historical supply demand relationships in this market. Please note that the average marketing time of active listings is significantly above the average for closed sales in the prior 12 months. 

Interest Rates

In the first quarter of 2022 we saw a sharp increase in interest rates. Interest rates peaked in our area around 8.25% in summer of 2023. Since the Federal Reserve announced the rate cut in September of this year we have seen interest rates decrease into the 6.25% to 6.75% range. Rates have come up somewhat in the most recent month and are hovering between 6.75% and 7.50%. Following the proposition of increased tariffs under the incoming presidential administration experts are now stating that further decline in interest rates is unlikely in the coming year.  Please note that the interest rate can vary significantly between lending institutions and borrower qualifications. Contact your Joel Ward Homes agent for recommendations! 

Employment

The close connection between employment levels and the strength of housing markets has been well established, both locally and on a national basis.  In November 2024 (the last month for which data has been published) there were 116,083 employed people in Champaign County and an unemployment rate of 3.7%. In November 2023 there were 114,772 people employed with an unemployment rate of 3.6%. This results in a 1.1% increase in the number of people employed. What follows is a graph showing the number of jobs in Champaign County, by month, based upon non-seasonally adjusted U.S Bureau of Labor Statistics data. 

Conclusions

We continue to see the shortage of homes available be a significant factor in our market. It is most noteworthy that sales volume for 2024 was the lowest it had been since 2011 following the market crash of 2008. However, values remain strong, experiencing a 9.0% increase year over year.

What does this mean to the home seller? Seasonality is the most significant factor for a seller to consider as we enter the winter months. Holding costs should be considered when negotiating offers as the potential for a longer marketing time is significant. Premium marketing is at an all time high importance as pristine listings still sell quickly.

While buyers should still be prepared to handle a multiple-offer situation we are experiencing more situations where buyers are able to negotiate, rather than putting in a “highest and best” offer, especially at price points above $300,000. Low inventory and the continuation of higher interest rates will be most significant obstacle for a buyer to overcome.