Low inventory, high demand causing Rockford area homes to sell at breakneck speeds
To say the the year has been ideal for home sellers may be a bit of an understatement.
In June, realtor John Broda of eXp Realty listed a home at 10 a.m.
By 6 p.m., he had 27 showing requests.
Not that realtors are playing a game of one-upmanship these days, but Heather Porter of Gambino Realtors added, "I listed a house on July 21. By July 22 or 23, I think I had like 35 showings and 14 offers. ... So yeah, it's a little crazy right now."
So, what's causing the phenomenon? Realtors say it's a scarcity of Rockford area homes coupled with high demand for homeownership.
The end result is homes are selling at record speed.
'Never seen anything like it'
In May, 433 new single-family homes, condos and townhouses were listed for sale in the Rockford housing market (Winnebago, Boone and Ogle counties). By the end of the month 79% or 344 properties were sold.
More: Why now is still one of the best times to sell your home in the Rockford area
The average amount of time it took to sell the properties was just over five days. And, of the 344 properties sold, 19 were taken off the market the same day they were listed.
Buyers are not only racing each other to close on the home they want, they're also offering more than asking price.
As a result, the average sale price for homes sold in the Rockford area hit a historic high this summer.
In June, homes in the Rockford region were sold at an average price of just under $200,000 compared to $88,142, a record low just 10 years ago.
Jean Crosby of Berkshire Hathaway HomeServices Crosby Starck Real Estate explained, the low inventory of homes for sales is driving up the price for home sellers.
"Typically, we would have 1,500 to 1,800 single-family properties on the market available, and we have 494 single-family homes available in a six-county radius. I've never seen anything like it."
Rapid appreciation has downside
While the housing market is ideal for sellers, it's difficult, if not outright frustrating, for buyers like Hector Martinez of Rockford.
He and his girlfriend spent three months searching for their first home and submitted offers on as many as 10 homes only to be outbid each time.
Martinez said it was sheer luck that he learned by word of a mouth that a house on Carol Court in Rockford was about to hit the market, and he pounced on it.
He contacted the seller and toured the house.
"We exchanged stories. You know, what he wanted and what I was looking for, and it all basically lined up," he said. "And he accepted my offer."
Crosby, who is also a Winnebago County Board member, said homes not sitting on the market for extended periods of time is a good thing, and rising home values are great for government bodies.
But there is a downside, she cautioned.
"Rapid appreciation is not healthy," she said. "Both coasts had rapid appreciation and now the East Coast and the West Coast are in the tank. Property values are down. ... We, in the Midwest, don't get that until like two or three years later, but it will come to roost on our door."
Chris Green: 815-987-1241; cgreen@rrstar.com; @chrisfgreen
This article originally appeared on Rockford Register Star: Rockford area homes selling fast and for top dollar
