By Kevin Haas
Rock River Current
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ROCKFORD — Home sale prices hit another monthly record high in February as Realtors landed 29% more sales than this time a year ago.
While record-high prices have cooled from the peak of $179,355 in October, last month’s average sale price still set the mark for the month of February.
The three-month rolling average price of homes purchased in Boone, Winnebago and Ogle counties in February was $159,030, according to Rockford Area Realtors. That’s an increase of more than 4% from $152,716 in February 2021. There were 325 homes sold last month compared to 251 the same month a year ago.
“We were anticipating growth in housing values this year in the mid-single digits and that is what we are seeing,” Conor Brown, CEO of Rockford Area Realtors, said in a new release. “A solid start for 2022.”
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Economic volatility and uncertainty across the globe have not seemed to affect the local housing market yet, the Realtors group said.
“The strong real estate market continued in February, even against some of this uncertainty,” Brown said. “Prospective buyers acted on lower rates and the early start of the spring buying season, and well-priced homes continued to move quickly off the market.”
Brown said one of the big questions in real estate is how rising interest rates will affect the housing market.
“This used to be a pretty easy question to answer: when interest rates go up, it costs more to purchase a home and demand drops,” he said. “This year, the numbers are not that straightforward. The market has been so hot. Even as rates have begun to climb, homes on average are flying off the market twice faster than before the pandemic.”
Related: 2021 was ‘remarkable and unparalleled’ for the Rockford housing market
He said perspective buyers should keep their eye on mortgage rates as they weigh purchasing a home.
Numerous Realtors have also said a growing number of renters are now hunting for homes, fueling a surge in demand. Data from realtor.com shows national rental rates grew 17% in the past year, hitting a new record.
“With rents already at a high and expected to keep going up, rental affordability is becoming an issue,” Brown said. “Many are thinking about making the transition from renting to buying their first home. Rising rents remain a motivating factor, even as home prices and mortgage rates continue to climb.”
Home sale prices in the Rockford region set a record high for the month of February in 2022, according to Rockford Area Realtors. (Photo via Canva)This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas.