Rockford sits in Top 5 of country’s hottest real estate markets; home sale prices top records again

By Kevin Haas
Rock River Current
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ROCKFORD — Home sale prices in the Rockford region hit a new record high in July, marking the third-consecutive month of the highest average price in history.

The three-month-rolling average price of a home sold in Winnebago, Boone and Ogle counties was $220,965 in July, according to data released today by the NorthWest Illinois Alliance of Realtors. That topped the June record by more than $7,000 and it’s an increase of nearly 8% from the average of $205,005 last July.

The real estate market is typically hotter in summer, with record highs being set in June 2023, July 2023 and August 2023, as well. Records were set in May, June and July so far this year.

“Average sales prices increased in July, which is typical of the summer market, but more indicative of how hot our housing market has become,” Conor Brown, CEO of NorthWest Illinois Alliance of Realtors, said in a news release.

Rockford also kept a place on Realtor.com’s list of the hottest housing markets in the country. It ranked at No. 4 in July, falling one spot from its third-hottest ranking in June.

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The top-ranked hottest housing market in the country was Oshkosh, Wisconsin, according to Realtor.com. Two other Wisconsin cities landed on the Top 20: Janesville at No. 9 and Green Bay at No. 18.

The other Illinois cities in the Top 20 were Springfield at No. 12 and Peoria at No. 16.

Realtor.com’s ranking accounts for market demand based on unique views per property and the pace that homes sell after a listing.

In the Rockford region, homes spent an average of 13 days on the market in July. The record pace was 9 days in July 2023.

Prices here have been driven up through a combination of high demand and a low inventory of homes for sale. But local Realtors say more sellers are getting into the market as prices escalate.

The 305 homes for sale in July are 11% more than 275 at the same time a year ago, and new listings on the market are at their highest level in the last 11 months. There were 441 new listings in July.

“The increased inventory offered more choices for buyers as sellers started returning to the marketplace,” Brown said.

Home prices in the Rockford region are still below the Illinois average of $308,000 in July.

Now, attention in the real estate market is focused on Jerome Powell, America’s top central banker, who has indicated that lower interest rates are on the horizon.

The monthly average rate for a 30-year fixed mortgage was 6.84% in July. It stands at about 6.35% now, according to Freddie Mac data.

“If this relief from mortgage rates happens, we should see more buyers beginning their hunt for a home,” Brown said. “With housing inventory still scarce, this improved affordability picture could reignite competition and sales as we head into the fall, or at least delay the usual post-summer cooldown.”

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