To summarize the Savoy market in October in one line: home prices are stabilizing, and interest rates are back in a burdensome range. I receive the same questions every month, but this month, there were more inquiries about "how long should I wait" rather than "is now a good time to buy?"

First, let me clarify the reference point. As of early November, the October transaction statistics are still being compiled, so the sales figures in this article are based on the most recent data available from September.

According to RealtyTrac's data for zip code 61874, the median sale price in Savoy for September was $335,700. This is a 7.49% decrease compared to $362,900 a year ago.

However, during the same period, Zillow's home value index reported $353,829, indicating a 2.3% increase from a year ago. This discrepancy can be confusing at first glance, as one shows a decline while the other shows an increase.

This difference arises from the measurement methods. The median sale price is calculated based only on homes that were actually sold that month, so it can fluctuate significantly depending on which homes were sold.

In smaller neighborhoods like Savoy, there aren't many transactions in a month. If a few new large homes are sold and a few older townhomes are sold, the median can drop quickly.

On the other hand, the Zillow index smooths out the estimated values of all homes in the neighborhood. Therefore, I look at the index for direction and the actual sale prices for a sense of the market.

When looking at both data sets together, it's hard to say that home prices in Savoy are collapsing. However, the atmosphere of bidding wars as soon as listings hit the market has definitely weakened compared to last year.

Widening the view to the entire county shows a similar trend. According to Redfin, the average active listings in Champaign County from January to June this year was 772, which is a 22% increase from a year ago.

During the same period, the months of inventory stood at 3.1 months. Typically, around 6 months is considered a balanced market, so while sellers still have the advantage, that edge is gradually diminishing.

So, what is the biggest cause of these changes? I would point to interest rates as the primary factor.

According to Freddie Mac's weekly survey, the average rate for a 30-year fixed mortgage was 7.32% as of October 22. This is slightly down from 7.40% the previous week, but over 1 percentage point higher compared to 6.19% a year ago.

On the week of September 24, rates hit 7.03%, surpassing 7% for the first time since January 2025, and remained above that level throughout October. Honestly, not many people would have predicted rates would rise this much again at the beginning of the year.

When rates increase by 1 percentage point, the monthly payment can change significantly even for the same loan amount. For a $300,000 loan at a 30-year fixed rate, the difference in principal and interest payments between 6.19% and 7.32% exceeds $220 per month, forcing buyers to reevaluate their budgets.

This burden directly translates into rental demand. Households delaying home purchases are remaining in the rental market.

Rental figures can vary significantly by source, so let's look at them separately. Zumper reported that the average rent in Savoy as of June was $1,382 per month, with apartments averaging $1,319 and single-family homes at $2,800.

Apartment.com reported an average of $1,186 in January, with two-bedroom units at $1,417. The differences arise from the timing and sample sizes of the surveys, so it's best to compare the current listing prices directly before making any agreements.

A notable characteristic of the Savoy rental market is the large gap between apartment and single-family home rents. Families with children looking for single-family rentals due to school districts may find themselves surprised if they only budget based on the average apartment rent.

There doesn't seem to be any immediate factors that would significantly decrease rents, as there is steady demand from those commuting to the University of Illinois and Carle Hospital. Now, as we enter the off-peak season after the fall semester begins, it may actually be a good time to negotiate terms.

Now, let's move on to local issues. The most notable is the downtown Savoy development project.

The village is working with private partners to create a new downtown plaza, and demolition for site preparation has already begun at the corner of Dunlap Avenue and Church Street. You will need to check the village's announcements for the start date of the main construction.

There were reports that some residents opposed the planned Cottage Court housing development near the plaza last April. This method of building small homes together raised concerns about density and parking issues.

There are mixed expectations about the development, with hopes that it will positively impact surrounding home values, but also concerns about the inconveniences during the construction period. If you're looking at nearby properties, be sure to keep an eye on the public hearing schedule and approval stages on the village's website.

This year also marks the 70th anniversary of Savoy's incorporation as a village. New housing developments in Prairie Meadow and Lake Falls are continuing, indicating a steady growth trend in the area.

So, how should you approach buying a home in Savoy right now? Personally, I would negotiate first on the current prices and seller credits, rather than just waiting for interest rates to drop.

Interest rates can be adjusted later through refinancing, but once you set the purchase price, you can't change it. Of course, refinancing comes with its own costs and conditions, so you should discuss scenarios with your loan officer in advance.

If you're considering renting, you might propose a lease longer than a year to lock in the increase limits. If it's for investment purposes, focus on areas with strong single-family rental demand in good school districts, but conservatively calculate whether cash flow is actually feasible at the current interest rates.

Once the October transaction statistics are finalized, I will summarize them alongside the September figures in the next briefing. The data for this month comes from RealtyTrac, Zillow, Redfin, Zumper, and Freddie Mac.