Home sales in the Rockford region fell to their lowest level in 13 years

By Kevin Haas
Rock River Current
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ROCKFORD — Home sales in the Rockford region fell last year to the lowest level in 13 years as increased mortgage rates, a low inventory of properties for sale and escalating prices continue to put a squeeze on the market.

There were 3,801 total sales in Winnebago, Boone and Ogle counties in 2024, according to data from the NorthWest Illinois Alliance of Realtors. That’s down about 2%, or 93 total sales, from 2023. It’s the lowest total home sales since 3,213 total sales in 2011.

Sales in the Rockford region have fallen each year since 2021, when 5,253 previously occupied homes were sold. The drop off mimics a national sales slump that started in 2022.

Nationwide, however, you have to go even further back to find a year where home sales were this low.

Existing home sales across the U.S. totaled 4.06 million in 2024, which is the lowest total since 3.85 million in 1995, according to the National Association of Realtors. Home sales in 2024 were less than 1% lower than 2023.

“It’s not because of lack of demand,” said Conor Brown, CEO of the NorthWest Illinois Alliance of Realtors. “The buyers are certainly out there and that’s why we’re seeing the prices continuously being pushed up.”

Related: Homebuilding in Rockford has hit its highest level since the Great Recession

The buyers are out there, but sellers are harder to come by.

That’s because a large number of buyers have locked into low mortgage rates from 2020 and 2021, and they don’t want to sell and take on a significantly higher rate, local Realtors say. A 30-year-fixed-rate mortgage stands at 6.87% now, according to data from federal home mortgage corporation Freddie Mac. Rates were below 3% for much of 2020 and 2021.

“They just aren’t in a position where they’re willing to take on a higher interest rate with prices that have also increased over the years,” said Marcia Williams, sales manager at Gambino Realtors. “A lot of them are choosing, even if they prefer to move, to sit for a little while longer to see what that rate activity does.”

Brown also noted that more homeowners are also deciding to age in place, with about 40% of Baby Boomers living in their home for 20 years or more, according to Redfin. He said that the coronavirus pandemic also drove up material prices and labor costs, making building new homes out of reach for many potential homeowners.

Last year had the highest level of homes built in Rockford since the Great Recession, but it was still less than half as many as were built in 2007, according to city of Rockford permit data.

There were 71 single-family home construction permits taken in 2024, up from 21 the year prior. That was the most since 157 in 2007, the year before the housing bubble burst.

More construction and easing mortgage rates are considered key to reversing the squeeze on inventory that has sent purchase prices rising to record levels.

Homes sold for an average price of $215,666 in Winnebago, Boone and Ogle counties throughout 2024. That’s a 12% increase from the previous high annual average of $192,431 in 2023.

“Even though prices have gone up over the past several years, it’s still very affordable, generally speaking, to live in the Rockford area,” Williams said. “We’re seeing a lot of movement by people from out of the area who are taking advantage of the lower cost of living and I think that’s just increased the demand out here.”

Williams said that buyers should understand they can purchase a home now and refinance if and when mortgage conditions change.

Total sales in the Rockford area have fallen about 28% since 2021, but the pace of the slide has slowed. Sales in 2024 were just 93 total homes fewer than 2023.

“It’s not a large number of houses in the grand scheme of things,” Williams said. “I’m hoping that’s going to be an indicator that things are going to start leveling off and maybe we can start seeing an increase depending on what interest rates and some other market conditions are.”

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