Rockford region’s home sale prices hit record high for fourth-straight month

By Kevin Haas
Rock River Current
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ROCKFORD — Home sale prices in the region hit a record high for the fourth consecutive month, topping an average of $240,000 for the first time.

The three-month rolling average price of a home sold in Boone, Winnebago and Ogle counties was $242,241 in September, according to new data from the NorthWest Illinois Alliance of Realtors. That broke the August record of $237,794 and represents a nearly 8% increase over the price in September 2024 of $224,406.

“Continued price growth over this long period, despite economic uncertainty, highlights the affordability and value Rockford homes still represent, and as a result a steady market demand,” Conor Brown, CEO of NorthWest Illinois Alliance of Realtors, said in a news release. “The biggest challenge in our housing market is the number of houses for sale, compared to the number of people who want to buy.”

Last month, the Wall Street Journal and Realtor.com ranked Rockford as the No. 2 fall housing market in the nation. The Rockford metro area been on the organizations’ list all year. It ranked at No. 9 on the summer housing market list and at No. 3 on the spring report. The top-ranked market this fall was Manchester-Nashua, New Hampshire.

Brown said the national spotlight draws new buyers here from outside the Rockford area because of the comparable value of housing, the proximity to Chicago, easier pace of life and lower cost of living. He said potential buyers end up realizing the region’s many lifestyle amenities.

Home sale prices in the region have been climbing to new record highs for much of the past five years, fueled by a high demand and a low inventory of homes available. Realtors say the low inventory has been largely due to homeowners feeling locked into the low interest rates they got in 2020 and 2021. They don’t want to sell and take on a new mortgage with a higher rate. However, equity earned as prices have climbed have started to entice more sales.

The inventory of homes for sale in September was the highest level all year with 381 on the market at month’s end. However, that’s still down 7% from 410 homes on the market last September.

“An estimated 48% of mortgage residential properties in the United States were considered ‘equity-rich’ in the fourth quarter, which means that the combined estimate amount of loan balances was no more than 50% of their estimated market values,” Brown said. “This expanded and growing equity could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can significantly help keep the cost of your next home down.”

The average monthly rate for a 30-year, fixed-rate mortgage was 6.35% in September, down from 6.59% in August and up from the September 2024 average of 6.18%. The rate now stands at 6.17%, according to Freddie Mac data.

There were a total of 353 homes sold in September, down nearly 6% from 375 homes sold last September. Homes sold in an average of 14 days. That’s one day quicker than August. The record pace was 9 days in July 2023.

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