By Mary Sisk
Rock River Current
Get our newsletter
ROCKFORD — The local housing market is beginning to slow with a small drop in sales last month.
There were 382 homes sold in Winnebago, Boone and Ogle counties in April. That’s six fewer compared to the same month a year ago, according to data from the Rockford Area Association of Realtors.
The organization says a low inventory of homes for sale is a contributing factor to the slowdown.
“Low inventory continues to be a factor in the market, pushing sales lower and prices higher, but buyer demand remains strong, buyers just can’t find the homes they want,” Conor Brown, CEO of Rockford Area Realtors, said in a news release.
The number of homes for sale dropped to 260 compared to 293 last April. This number of listings have sunk to nearly 17% less than last year.
Price increases are also much lower than usual as the market average price only went up 1.4% from nearly $162,000 last April to just short of $164,000 last month.
More on housing: $3.4m in federal housing money coming to Rockford
While sales are lower, interest rates rose from 3.06% last year to nearly 5% this year. While this is a significant increase, interest rates are still historically low.
Though sales are down and interest rates up, buyers are still interested in Rockford’s market due to affordability, Realtors said.
Renovations: How this Belvidere home went from from problem property to $190k listing
With Rockford homes costing approximately $171,100 in 2021, local residences were nearly $79,000 less than the average home in Illinois.
“The reality is that Rockford home prices are still extremely affordable, especially when you compare them to home prices across the state and nation,” Brown said.
Historical interest rates
Here’s a look at average interest rates going back to the 1970s.
Year | Interest rate
- 1970s: 8.86%
- 1980s: 12.7%
- 1990s: 8.12%
- 2000s: 6.29%
Source: Rockford Area Association of Realtors
This article is by Mary Sisk. Email her at msisk@rockrivercurrent.com or follow her on Instagram at @maryrrcurrent.