Home Sales in Champaign County Show a Slight Slowdown
The inventory of available houses and condos on the market in Champaign County is ample and growing. So says the head of the county's Association of Realtors - potentially good news for buyers, but he says sales are relatively slow.
May figures from the state realtors' organization shows 204 sales during the month, down 20% from May of 2010, with year-to-date sales down more than 15%.
Champaign County Association of Realtors president Max Mitchell says tax credits for first-time home buyers have come to an end, and since then buyers have been hesitant. "In 2011, with the interest rates being so favorable, it has gotten people out, but people are a little bit nervous simply because they've heard on the news that you have to have a higher credit score to qualify for a loan," Mitchell said.
Mitchell says the potential for higher required down-payments also has buyers and real estate observers worried. On the other hand, state figures suggest that home prices in Champaign County are holding their own compared to the rest of the state - the median sale price in May held nearly steady with the median price a year ago.
But Mitchell cautions that foreclosures are becoming more of a problem for the market. He says up to now, foreclosed homes have been a target for investors. "Now there are more foreclosed properties, and unfortunately, investors see that if you're going to own a foreclosed property, you aren't going to be able to resell it for a much higher amount in today's market.