Champaign IL Real Estate Facts That Just Might Surprise You…

Champaign IL Real Estate Facts That Just Might Surprise You…

If you read the news, then you’re well aware that it’s a buyer’s market, you can purchase “great homes” for $10,000, get 50% off the list price, and perhaps even ask the seller to include his first-born child in the sale of his home. *wink* *wink*

But when it comes to making a purchase here in Champaign-Urbana, three of the four above statements are false. Yes, especially the last one :-)

Real estate is local. This means that market trends can vary widely from state to state, city to city, even neighborhood to neighborhood in some cases. Just because home prices dropped 40% in some locations around the country does NOT mean that prices dropped by 40% here.

So let's examine the facts. The following information concerns specifically Champaign County, Illinois:

Fact #1: The average sale price at its peak in 2007 was $152,243, and the average sale price for 2010 was $148,039. That's a decrease of about 3%. Now, in all likelihood we're going to see a further decrease by several percentage points for 2011. Still, our prices have not dropped 20%, 30%, or even 50% like in some parts of the country.

Fact #2: $10,000 won’t buy you very much. At all. It might get you a foreclosure needing tens of thousands of dollars worth of repairs likely located in a rural town outside of Champaign-Urbana city limits. If you're looking for something move-in ready in Champaign-Urbana, prepare to spend significantly more than that.

Fact #3: Short sales and foreclosures are the exception, not the rule, in this market. Plenty of agents in Champaign-Urbana have never dealt directly with the sale of a short sale or foreclosure. The distressed market is such a small portion of our market that if you don’t want to go near a short sale or foreclosure, you don’t have to.

These are all positive things, of course, which paint an awfully pretty picture of our local market. However, I would be remiss not to include some of the facts that present challenges for today’s home sellers in Champaign-Urbana:

Fact #4: Between 2007 and 2010, the total number of homes sold per year in Champaign County decreased by about 30%, a significant number indeed. Right now it appears that the number of homes sold for 2011 will be quite close to the total number sold in 2010.

Fact #5: Back in 2006 sold homes enjoyed an average of 67 days on the market and the average absorption rate for the year was 5.9 months. For 2010, the average days on the market was 90 with an average absorption rate of 10.5 months.

My interpretation of the facts: while sales have slowed overall and some homeowners have lost equity in their homes over the past few years, this area has, nonetheless, been quite fortunate.

Yes, it’s a great time to buy due to low interest rates and a surplus of homes on the market in Champaign County IL. But if you want a home in good condition and in a desirable location, you can expect to pay a fair price for it. Knocking 20% off the list price of a home that’s priced right is quite unrealistic. (Fact #6: Home sale prices in 2010 averaged 95.8% of list price!)

These are the facts. If you'd like some help interpreting the facts as they apply to your own situation, then let's meet up! I’d love the opportunity to help you make a sound decision regarding your real estate needs.