Housing review: Low inventory, high mortgage rates drove Freeport-area market for 2023
While it was a tough year for buyers in Stephenson, Jo Daviess and Carroll counties, the 2023 housing market showed some promise and signs that things may improve this year.
According to the North West Illinois Alliance of Realtors, a total of 973 homes were sold in the tri-county region, an 11.2-percent drop from 2022 and the fourth-straight year of decreased sales for area agents. There were 1,096 homes sold in 2022 in the region.
Boone, Winnebago and Ogle counties saw a 17.7-percent volume decrease last year. Sales decreased by 18.3% statewide and 18.7% across the nation.
An average of 174 homes were on the market each month last year, down from 181 in 2022. That meant there were seven fewer homes for potential buyers to see every month.
The average sales last year in the tri-county area came in at $198,700, down slightly from 2022’s average of $202,160. In 2021, the average price was just over $179,000.
“This was a market driven by rising mortgage rates,” said Conor Brown, CEO of the North West Illinois Alliance of Realtors.
Rates on home loans moved north of 8% for the first time in 20 years. Higher rates affected the supply of homes on the market, as homeowners who already have a lower mortgage rate are less likely to put their house up for sale, as buying another home often means they’d do so with pricier financing.
“This is still a strong seller’s market,” Brown said.
Good news for buyers, interest rates started to come down in the fourth quarter of 2023 and are expected to decrease in 2024, improving the number of available homes for sale.
“It’s not something that we think will be accelerated, but it’s something that we do anticipate,” Brown said.
Brown added that homes in northwest Illinois are currently selling for about 35-percent less than the rest of the state and nearly 50-percent less than the rest of the country.
“We are still in a very affordable market,” he said.
Listings in Stephenson, Jo Daviess and Carroll counties Listings sold in just 44 days last year, 1 1/2 days faster than in 2022. In 2021, homes stayed on the market for nearly 93 days.
Jim Hagerty writes about 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: Strong seller's market dominated northwest Illinois in 2023
