Rockford region’s real estate market hits fifth-lowest level of homes for sale on record
By Kevin Haas
Rock River Current
Get our mobile app
ROCKFORD — The region’s housing market continued its challenging trend for potential homebuyers last month with the inventory of homes for sale hitting the fifth-lowest level on record, according to new data from the NorthWest Illinois Alliance of Realtors.
There were a total 219 homes on the market in Boone, Winnebago and Ogle counties in February, according to statistics released Wednesday. That’s the lowest level since March 2024, when there were 193 homes for sale. The record low is 175 in April 2024.
“We’re seeing one of our most demanding inventory situations,” Conor Brown, CEO, NorthWest Illinois Alliance of Realtors, said in a news release. “The absorption rate — the time it takes to sell through all the homes we have on the market — is just 0.68 months, whereas a balanced market sits at six months inventory. That means it would take only 20 days to sell through our current inventory, if no more homes were to come onto the market. The average monthly inventory since stats were first collected in 1998 is 1,836.”
The low number of homes for sale has largely been credited to low mortgage rates buyers locked in during the pandemic. Now, they’re reluctant to sell and take on a rate that could be double what they’re paying or higher. There has also been limited new home construction, although that trend has started to shift locally with last year seeing the most home construction permits in Rockford since 2007.
The 30-year fixed-rate mortgage is now 6.67%, according to federal home loan corporation Freddie Mac. The rate had hit a record low of 2.65% in January 2021.
Realtors are trying to encourage more homeowners to consider selling by focusing on the equity gains they’ve made in their home’s value and how mortgage rates are still lower than long-term historical averages.
“The average homeowner owns their home for 11.8 years,” Brown said. “If we go back 11 years, the average Rockford homeowner has seen a 138% gain in their investment. This is real eye-opening: their home rose from a three-year rolling average price of $89,709 to $213,541 over those 11 years. That’s an unheard-of equity gain of $123,832.”
Homes sold in February for a three-month rolling average of $212,871, which is a 9% increase from $195,799 in February 2024. There were 245 homes sold last month, compared to 205 during the same month a year ago.
Homes sold at a similar pace as last year, with the average property on the market for 34 days. It was 35 days in February 2024.
Lowest inventory on record
- February 2025: 219
- February 2024: 216
- March 2024: 193
- March 2023: 195
- April 2024: 175
Hot housing market
Rockford continues to rank as one of the hottest housing markets in the country, according to Realtor.com.
It ranked No. 4 in February, moving up three spots from its January ranking. The top-ranked city was Hartford, Connecticut, in February. Rockford held the top spot in December.
The Realtor.com ranking is determined by market demand as measured by the number of unique views per property on the website. It also factors in the pace at which homes are sold.
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
