March 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 (03/01/2024-02/28/2025) the MLS reported 1,542 sales with a median sale price of $235,000 and a reported average marketing time of 34 days. For the prior twelve months (03/01/2023-02/27/2024) the MLS reported 1,630 sales with a median sale price of $212,858 and a reported average marketing time of 28 days.  This shows a year-over-year decrease in the number of sales of 88 homes or -5.7%. The median sale prices saw a 9.4% increase year-over-year. There are currently 108 homes on the market with an average marketing time of 119 days. This results in a 0.8-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 6.50% and 7.25%. Given substantial uncertainty in the market it is unlikely we will see significant change in interest rates in the near future.  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 December 2024 (the last month for which data has been published) there were 110,890 employed people in Champaign County and an unemployment rate of 3.%. In December 2023 there were 105,772 people employed with an unemployment rate of 4.0%. This results in a 4.8% 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. Note that BLS has not yet released figures for January 2025.

Conclusions

We continue to see the shortage of homes available be a significant factor in our market. January and February sales were down from 2024, though within the range of volume over the prior 5 years.

What does this mean to the home seller? As we approach the peak marketing season of April through July sellers need to be mindful of the fact that appropriately priced houses are selling in days while the market is rejecting properties that are over priced. This can lead to marketing time in excess of 90 days even with price reductions.

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.