‘Home prices are catching their breath’: Rockford-area sales prices hit lowest mark in 6 months

By Kevin Haas
Rock River Current
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ROCKFORD — Home sale prices in the Rockford region have fallen for a third-straight month to their lowest average price in six months.

The three-month rolling average price for homes sold in Boone, Winnebago and Ogle counties was $183,239 in November. That’s down about 5% from the record high of $193,577 in August, according to new data from the NorthWest Illinois Alliance of Realtors.

“Home prices are catching their breadth by moderating over the last six months,” Conor Brown, CEO of NorthWest Illinois Alliance of Realtors, said in a news release.

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While the sales price has cooled from its record highs, the average is still up from where it stood a year ago. The average November sales price was nearly 5% higher than last November, when homes sold for an average of $174,892.

“The major question on the minds of homeowners and aspiring buyers is what will happen to home prices. Soaring double-digit price increases were propelled by all-time low mortgage rates, which are a thing of the past,” Brown said. “As a result, home price growth is expected to moderate to single-digit gains. More of what we expect to see in a traditional housing market.”

There were 332 total sales in November, a drop of 32.5% from the 492 sold in November 2021, according to the data from NorthWest. That was the lowest monthly sales total since 2016, when 292 homes were sold.

It took an average 19 days for a home to sell in November, which matches the rate in October. It’s three days faster than November 2021 but up from the record pace of just 10 days on the market in July.

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The inventory of homes on the market also fell again. That number is down nearly 19% from 539 properties for sale last November to 437 this past month.

Mortgage rates have lowered slightly after sharp increases earlier in the year. The 30-year fixed mortgage rate hit a high of 7.08% the week of Oct. 27, and is now down to 6.31% for the week of Dec. 15.

“As mortgage rates fluctuate, they impact your purchasing power by influencing the cost of buying a home,” Brown said. “Even a small dip can help boost your purchasing power.”

This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas.