CHAMPAIGN, Ill. (WCIA) — A mix of drastic dips in mortgage rates and a growing supply in August have reshaped the housing landscape in Champaign County.

As fall approaches, the shifting mortgage rates and growing supply of homes on the market are both making an impact. According to the August report from the Champaign County Association of Realtors, home sales continued to ease last month with 255 properties sold. This number is down from both July 2025 and August 2024.

“Like realtors across the state, I’m seeing a market in transition,” said Jayme Ahlden, president of CCAR and broker with Coldwell Banker Real Estate Group. “The Federal Reserve just made its first rate cut since last year, and while that doesn’t directly set mortgage rates, it does signal that borrowing costs are trending lower, it sets the tone.”

When the release came out on Wednesday, 30-year fixed mortgage rates dropped to 6.13%, which is the lowest level in three years, according to Mortgage News Daily and CBS News. Additionally, the National Association of Realtors said that mortgage demand has jumped to its highest level in four years, with refinance applications up 23% compared to the same week in 2024.

And even with less closings, CCAR said prices have showed resilience. The median sale price returned to its June price of $245,000, which is a decline from July but up 3.8% from this time last year.

“Before the federal cut breaks, our market was already busy,” Ahlden said. “And now, with this recent rate cut, I foresee more buyers coming on the market and I think that we are going to have a busy fall for sure.”

Inventory is also on the rise with 700 active listings as of early September. But instead of slowing things down, homes are moving faster. With that, the average time on the market for Champaign County houses has dropped to 22 days compared to 34 days in July and 36 a year ago.

Additionally, pending sales grew to 190 contracts. This is an almost 8% increase from July. And for realtors, the takeaway is for people to be well-prepared as well-priced listings move quickly.

“For the average homebuyer, the takeaway is just that rates are easing, and affordability is increasing,” Ahlden said. “Buyers are coming back and sellers who prepare well are still seeing strong demand. It is a window of opportunity, but you have to be strategic. With rates lower and more homes on the market, buyers have more opportunities, but sellers have to prepare well and really make their homes market ready.”