By Kevin Haas
Rock River Current
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ROCKFORD — Home sale prices in the Rockford region have set a record high for the fourth straight month, according to the latest data from the NorthWest Illinois Alliance of Realtors.
The three-month-rolling-average price of a home sold in Winnebago, Boone and Ogle counties was $222,250 in August, topping the July record of $220,965. It’s also 8% higher than August 2023, when the average price was then a record high of $205,198.
A combination of low inventory of home for sales and high demand has had prices skyrocketing for the past few years, especially as mortgage rates rose and homeowners often opted to stay locked into their low rate rather than look to sell.
However, August saw inventory increase by 14%, and August marked the highest month for new listings in three years with 504. Realtors credit that to homeowners who held onto their property for years deciding to capitalize on the increase in their equity. However, inventory is still historically low.
“Inventories remain near historic lows showing that the market will continue to be highly competitive and challenging for homebuyers,” said Conor Brown, CEO of the NorthWest Illinois Alliance of Realtors. “We’re seeing both a fast-selling and competitive-buying market. But we’re happy to see the market move towards a bit more balanced state.”
The high demand for homes in the region landed Rockford at No. 3 on the Realtor.com list of hottest housing markets in the country in August. Rockford moved up a spot from No. 4 in July.
Despite the rising prices, Rockford came in at No. 20 on the U.S. & World News list of most affordable places to live in the country.
“The Illinois city has attractions for locals to enjoy, including a minor league hockey team, a downtown entertainment arena, the outdoor Starlight Theatre and a Japanese garden,” the report stated.
Earlier this month, the Fed rolled back interest rates for the first time in four years, making a half-percentage point cut. The rate cut is expected to have an effect on the mortgage market, too.
The current 30-year fixed mortgage rate is 6.08%, down from 7.31% a year ago, according to Freddie Mac data.
“For Americans mulling a home purchase this interest rate cut meant just one thing: It’s time to get back in the game,” Brown said. “The drop in mortgage interest rates, coupled with the potential for more rate cuts by the Federal Reserve, could definitely spur additional home-buying activity.”
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas