Central Illinois Real Estate Blog

As we round the half point of 2022, the hurried pace surrounding home sales in the Macon County residential real estate market is starting to show signs of a gradual slow and return to normalcy. We’ve been living through unprecedented times, and the real estate market has been enjoying unprecedented opportunities for buyers and sellers alike. As Macon County real estate slowly begins to assume a more typical pace, let’s take a quick look back.  

In 2019 and pre-pandemic, there were 1303 residential homes sold in Macon County at an average sales price of $118,126. Fast-forward to the end of 2021, our area saw 1572 residential homes sold for the year with an average sale price landing at $135,914. That equates to a 21% increase in the number of homes sold and a 15% increase in average sale price. As we transition into the second half of 2022, we are starting to see this leveling off with 10% decrease in the number of homes sold and a moderate decrease of 2% in the average sale price compared to the same period for the previous year.

After a robust two year run with residential homes sales in our area, rising interest rates, inflation concerns, and an inclement global economic climate have led to a decrease in buyer demand and a slow accumulation of active listings on the market.

“We anticipate this rebalancing will continue through the end of the year and even into the early part of 2023,” says Brinkoetter Realtors Designated Managing Broker/ Owner, Tom Brinkoetter. “Buyers and sellers alike should not be concerned. A return to a normal, more-balanced real estate market is essentially good for everyone in the long run, but we may need to reset our expectations as we navigate our way through the changing market.”

So what should sellers expect to see? The fever-pitch of buyer demand has been tempered in recent months and is effectively leading to a gradual accumulation of inventory. Sellers anticipating the instant sale and multiple offers we’ve seen over the past two years should be prepared that we are entering a new, more traditional climate. As we move more toward normalcy, sellers should expect an increase in the number of days their home is on the market. With a large percentage of homes going under contract within 30 days over the last two and half years, we will start to see shift to a more traditional 90-120 days on market environment. Keep in mind, families are still growing, job opportunities are on the incline, buyer needs will continue to change and homes will still be sold. Sellers should remain optimistic and ready to make a move in the months to come.

So what should buyers expect to see? With 30-yr mortgage rates roughly double what they were a year ago, some buyers have put their moves on hold. Others have simply adjusted their purchase price to accommodate the rate increase. Though the rates have increased, historically speaking, current mortgage rates are still very favorable and there’s also the old adage, “date the rate and marry the house.” Rates change and opportunities arise for refinancing as the economic climate shifts so the rate you employ today may not be the same rate you have 5 to 10 years down the road.

Adds Brinkoetter, “As we move into a more traditional market, buyers should expect more inventory and less competition; sellers should expect more competition and a reduced buyer pool; both should prepare for favorable experiences at the negotiating table as the real estate playing field begins to level out.”

And though the “unprecedented days” may soon be behind us, settling into the predictability of a more typical tomorrow may prove a welcome relief to our communities and neighbors. The Macon County real estate market will remain a strong, resilient economic driver in the months to come. Buyers and sellers may be required to adjust their expectations on timing or interest rates, but certainly not on what they want most out of a home. 

Brinkoetter Realtors leads the industry with interactive software, innovative communication, cutting-edge technology, and a highly-skilled team, committed to serving our clients throughout Decatur and Central Illinois. Get more attention, more exposure and make a bigger impact when you list with Brinkoetter Realtors. Go to Brinkoetter.com to connect with one of our agents today!

*statistical data sourced from the Central Illinois Board of Realtors, MLS for Macon County residential listings