Rockford area home sales hit all-time high
The average sale price for homes sold in the Rockford area last month hit a historic high point.
June sales for homes in Jo Daviess, Carroll, Stephenson, Winnebago, Boone and Ogle counties came in, on average, just under $200,000.
In March of 2014, the same market area hit a record low with an average home sale price of $88,142. In June, it was $198,254.
"To look back over the last 10 years and see home prices double for our market is just absolutely fantastic," Conor Brown, CEO of NorthWest Illinois Alliance of Realtors, announced Thursday morning. "I think this lends itself to the belief that buying a home is truly an investment for generating long-term wealth."
More: On the market: 4-bedroom home on the Rock River has heated garage, solar panels
Not only does rising property values increase the tax base for Rockford and surrounding communities, Brown said, it also helps to market the region as a good place to work and live in.
"We're still a relatively affordable housing market," he said. "While you are seeing national strains, people are looking to Rockford as a place to move to because you can just get so much more for your money."
In June, the median home price in Illinois was $291,945, 47% higher than the average sale price of a home in the Rockford region. Across the United States, the difference was even more noticeable. The median existing-home price for all housing types across the country in June was $410,200, the second-highest price ever.
Higher home prices can incentivize home builders to start building again, Brown said. Existing homeowners see equity in their homes go up, which allows them to take out loans to consolidate debt or pay for renovations that will further increase their home's value.
Winnebago County Board member Jean Crosby of Berkshire Hathaway HomeServices Crosby Starck Real Estate, described the rise in home values as "the most insane market I've ever seen."
"It's amazing how many properties sell over the list price," she said. "I'm not talking $1,000 or $2,000 over, I'm talking $10,000."
Crosby said there were 40 home closings on Tuesday and of those closings, 26 involved homes selling at or above the listed price.
The data speaks to how low the available housing inventory is.
"Last week spring, we had about two weeks of inventory, meaning if another house wasn't listed, the inventory would be gone in two weeks," Crosby said.
Now, the Rockford region is approaching a month's worth of inventory, still a very low amount.
"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," Crosby said. "I've never seen anything like it."
The Rockford housing market is valued at $1.06 billion — $806.5 million in direct home sales in 2022, another $127.3 million in impacted spending and $133 million in home construction and renovation.
The real estate industry accounts for an estimated 14.85% of the regional gross regional product.
Brown said if any homeowner is contemplating putting a for sale sign in their front yard, now is the time to do so.
"Inventory levels are still at historic lows," he said. "Home values skyrocketed over the course of the pandemic, so selling now is likely a wise financial decision."
Chris Green: 815-987-1241; cgreen@rrstar.com; @chrisfgreen
This article originally appeared on Rockford Register Star: Average price for Rockford area homes nearly $200,000, a record high
