Buying first home in the Rockford area? New report says no, local realtors say yes

The Rockford area is one of the worst markets for first-time homebuyers, according to a report released by ConsumerAffairs earlier this month.

Local realtors, however, say the report doesn’t tell the whole story.

ConsumerAffairs ranks metro Rockford the fourth-worst market in the country for those entering the real estate market for the first time.

“The average price of homes in Rockford has doubled since 2014,” the report states. “When considering other factors such as Illinois’ notoriously high tax rates, increasing mortgage rates, and high crime rates, it comes as no surprise that the area might not be ideal for first-time homebuyers.”

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The news comes nearly two months after the Northwest Illinois Alliance of Realtors included Loves Park and Machesney Park on its list of the most competitive Illinois markets.

“One of the most competitive markets in the country to fourth-worst for first-time buyers is an interesting twist,” said Larry Holen, designated managing broker and general manager of Dickerson Nieman Realtors in Rockford.

Holen added that while the report is correct that there is high demand for homes in cities like Loves Park and Machesney Park, which does drive prices up, it's not necessarily a deterrent.

“Rockford and surrounding community property owners are clearly benefiting from increasing property values,” he said. “A home is most homeowners' largest investment, and much of their wealth is held in a home’s equity. This is a clear win for the property owners in the area, first-time buyers or otherwise.”

Incentives are also ample for first-time buyers, something realtors say outweigh data in the ConsumerAffairs report.

“There are first-time homebuyer grants available to help with your down payment and out-of-pocket expense,” said Cheryl Jacobs, an agent with Gambino Realtors. “Rates are expected to come down in 2024 as well.”

The most popular assistance program in Illinois is offered by the Illinois Housing Development Authority (IHDA). It provides first-time buyers and those who don’t currently own a home with up to 4-percent of the purchase price for a down payment. That amount is usually forgiven.

“(IHDA) offers below-market rates to qualifying first-time buyers,” Holen said. “Illinois has some of the best first-time homebuyer programs in the country.”

To come up with the best and worst markets for first-time homebuyers, ConsumerAffairs ranked metropolitan areas based on nine financial and quality-of-life factors.

“Each area received a financial friendliness score and a quality-of-life score, which we added together for an overall score,” a release from the organization said.

Rockford ranked above Stockton, California (5), on the list of the five worst markets for fist-time buyers. Rounding out the top five were Memphis (3), Lubbock, Texas (2) and Anchorage, Alaska (1).

The best market for first-time homebuyers, according to ConsumerAffairs, is Raleigh-Cary, North Carolina.

Jim Hagerty covers business, growth and development and other general news topics for the Rockford Register Star. Email him at jhagerty@gannett.com.

This article originally appeared on Rockford Register Star: Rockford realtors respond to unfavorable report by ConsumerAffairs