Urbana, IL - Real Estate Market Update (August, 2008)
What better time than August to give an update on Urbana's real estate market? As the end of the 'prime-time' months for real estate draw to a close (May, June, July & August) let's take a look at what has been going on compared to the previous year.
Take a minute to review the chart and you'll find my take on the local market below.
| 2007 | 2007 (1/1 thru 8/25) |
2008 (1/1 thru 8/25) |
% Change From Prior Year |
|
| Closed Sales | 584 | 436 | 297 | -32% |
| Median List Price | $129,900 | $128,700 | $129,900 | 0.9% |
| Average List Price | $140,598 | $135,599 | $144,587 | 6.6% |
| Average Sale Price | $136,814 | $132,282 | $139,832 | 5.7% |
| Avg LP to SP | 97.3% | 97.6% | 96.7% | |
| DOM | 75 | 75 | 89 | 19% |
| High Sale Price | $925,000 | $695,000 | $740,000 | |
| Low Sale Price | $37,560 | $37,560 | $34,000 |
Overall, the home sales in Urbana, IL have held strong this past year as national real estate trends continue to decline. Urbana continues to build out new subdivisions and start plans for new additions in the ever expanding edge of the city.
The Good: Home prices in Urbana increased 5.7% thru August. This is a pretty remarkable number when you consider it along with the drastic losses you hear about throughout the country. Urbana's absorption rate is 5.2 months. The absorption rate is a statistic used to compare the outstanding inventory in a given market. To sell all the actively listed homes in Urbana it would take 5.2 months. Most real estate pundits make 6 months the benchmark or breaking point to move from a Buyer's Market to a Seller's Market. It may not feel like it for some home sellers in Urbana but we are technically in a Seller's Market. The main difference is many homeowners (and Realtors) got used to stories of fast and easy homes sales from the past 2-3 years. To sell your home in today's market you need effective pricing and professional marketing to get the job done.
The Bad: The average days on market for a home has increased 19% to almost 3 months. This is directly related to the 32% decrease in the number of home sales in Urbana. The List Price to Sale price ratio has also dropped. Home owners are now getting 96.7% of their asking price on average. On a $100,000 home this equates to a loss of $900 compared to the prior year.
The Interesting: It's interesting to note that the number of sales has dropped, it's taking longer to sell a home and the average LP to SP ratio has fallen BUT... the average and median home prices continue to increase. Why? In a nutshell, Champaign/Urbana offers a bit of an insulated economy that has not been severly impacted by national trends. The constant in and out of University employees provides a steady demand for real estate in this area. We are also supported by a strong employment base (Carle, Christie, Kraft, Amdocs, Yahoo, Wolfram, Canadian National, etc.).
If you are thinking about buying a home in Urbana email or give me a call to learn more about the area and what you can expect for your price range. You will receive up to date information on our local market that can help you make a a solid investment as well as learn how to find a home you will love.
www.ChampaignExperts.com
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