Rockford-area home sale prices set new record high in June

By Mary Sisk
Rock River Current
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ROCKFORD — Home sale prices in the region have returned to their record-setting ways as buyers scramble to snatch up properties before mortgage rates rise further.

The three-month rolling average sale price for a home in Winnebago, Boone and Ogle counties was $187,072 in June, according to the NorthWest Illinois Alliance of Realtors. That tops the previous all-time high of $179,355 set in October. When the record was set nine months ago it was the third-straight month of new record high prices and the sixth time in 10 months a new record was set.

But the record-setting pace cooled as mortgage rates started climbing. The latest average rate of 5.52% in June is up from 2.98% a year ago, and more increases are expected.

“Homes are still showing strong price gains and they’re selling rapidly, even though the housing market is starting to feel the impact of rising mortgage rates taking a hit on purchasing power,” said Conor Brown, CEO of NorthWest Illinois Alliance of Realtors.

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The average sale price in June is up more than 6% from the same time one year ago, when the average stood at $176,345.

The number of homes available for sale remains low, keeping prices high, but there was an uptick in new listings last month. There were 583 new listings in June, the highest number in the past 11 months. However, there were 412 homes for sale at the end of the month, down nearly 11% from 462 in June 2021.

Brown encourages homebuyers to act quickly as prices and mortgage rates aren’t expected to fall and inventory remains low.

“Home prices have consistently moved upward as supply remains tight,” Brown said. “Home prices will likely keep appreciating because there are still fewer homes for sale than there are buyers in the market.”

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The total number of homes sold fell this June to 437 homes compared to 507 last year. Demand remains strong though, with homes lasting an average of 15 days on the market. That’s the second-fastest pace after the average of 13 days on the market in July and August of 2021.

June comparison

Source: NorthWest Illinois Alliance of Realtors

This article is by Mary Sisk. Email her at [email protected] or follow her on Instagram at @maryrrcurrent