Rockford-area home prices hit new record high in June

Local prices mirror a national trend, with a few notable exceptions

By Kevin Haas
Rock River Current
Get our mobile app

ROCKFORD — Home sale prices in the region rose to a new record high in June, mirroring a national trend that has seen soaring costs coupled with years of a low supply of houses for sale.

The three-month rolling average price of a home sold in Boone, Winnebago and Ogle counties hit $226,786 in June, according to the latest data from the NorthWest Illinois Alliance of Realtors. That’s $2,380 more than the previous record of $224,406 in September.

The local numbers were released Thursday, a day after National Association of Realtors data showed a new record average of $435,300 in June. The national average sale price is up 2% from a year ago, but prices are rising even faster in the Rockford region. June’s record high prices are up 6% from the same month a year ago.

The Rockford region also bucked the national trend in another way: Home sales were up nearly 15% in June compared to a year ago. The 372 homes sold in June are also an increase from 334 in May, the local Realtors’ data shows. Nationwide total sales are trending downward, with homes sales hitting their lowest total in nine months, according to the National Association of Realtors. In the Rockford region, total sales volume is up for a ninth-straight month.

Record high prices, combined with 30-year mortgage rates around 6.75%, have made buying unaffordable for many, especially first-time buyers. But the head of the local Realtors agency says Rockford benefits from a comparably affordable market, and sales are being driven by residents moving here from Chicagoland and other parts of the country.

“While first-time homebuyers are feeling the pinch, with higher prices and lower inventory to compete for, home prices here are still an incredible value,” said Conor Brown, CEO of NorthWest Illinois Alliance of Realtors. “Our $226,786 average priced home is 28% less expensive than an average home in Illinois, priced at $315.000. That’s $88,200 less. That’s a great buy.”

Rockford remained in the Top 20 of Realtor.com’s hottest housing markets, ranking No. 17 in a three-way tie with Appleton, Wisconsin, and Canton-Massillon, Ohio. Rockford has previously been ranked in the Top 5, including holding the top spot in December.

The hotness ranking is measured market demand by unique views per property on Realtor.com and the pace that homes move off the market.

In June, homes sold at an average pace of 16 days in the Rockford region, according to NorthWest Illinois Alliance of Realtors. That’s up from 12 days a year ago.

“Sure, the pace of the market has cooled compared to the frenzy we saw just a few years ago, but that’s not a red flag. Hopefully, it’s a start to return to normal,” Brown said. “And normal doesn’t mean nothing’s happening. Buyers are still out there — and homes are still selling.”

The supply of homes for sale continued to decline in the Rockford region, with 179 homes on the market at the end of the month compared to 268 a year ago. That’s a decline of 33%.

The lack of inventory has been caused by a combination of homeowners staying put in order to hold on to low mortgage rates, some below 3%, and a lack of homebuilding in the area. In Rockford, for example, there have been only seven single-family homebuilding permits taken out this year through the end of June, according to city permit data.

Still, Brown says, the market hasn’t stopped. A home sells every two hours in the three-county area for an average of about 12 a day, he said.

“If you’ve been holding off on selling your house because you think buyers aren’t out there, let this reassure you — there are still buyers looking to buy,” he said.

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