ROCKFORD — Rising mortgage rates and a lingering shortage of inventory are contributing to a slow down in the region’s sizzling housing market, according to Rockford Area Realtors.

Single-family home sales in Winnebago, Boone and Ogle counties declined 1.5% in April compared to the same month in 2021.

“Low inventory continues to be a factor in the market, pushing sales lower and prices higher, but buyer demand remains strong,” Rockford Area Realtors CEO Conor Brown said in a news release. “Buyers just can’t find the homes they want.”

The number of homes on the market in the Rockford region at the end of April was down more than 11% compared to figures from a year ago. New listings were down nearly 17% during that same period.

The shortage of homes for sale in the region presents some unique challenges, according to Debbie Carlson with Berkshire Hathaway Starck Real Estate.

“Some buyers either get totally turned off and pull back,” Carlson said. “Others get very depressed and seem like they jump on anything without thinking through it thoroughly.”

Some sellers in the region are still fielding multiple offers for their property, including offers that are well above the asking price.

“It’s not always based on what somebody offers you for a sale price. It’s the contingencies and the things that are in the contract,” Carlson said. "It's in the details."

More local: Here are the 10 most expensive homes sold in the Rockford area in April

The market-wide rolling average sale price of a property in the region rose 1.4% in April to $163,937, marking the smallest price increase in three years.

Interest rates continued their steady climb in April, with the average 30-year fixed rate mortgage rising to 4.98% compared to 3.06% a year ago.

While rates are on the rise, they remain at historically low levels compared to the last five decades, Brown said.

“If you’re planning to buy a home, it’s critical to understand the relationship between mortgage rates and your purchasing power,” he said. “Many buyers today are looking at an opportunity to get ahead of these increases, to buy now before it can more significantly impact your purchasing power.”

Rockford area homes are still a bargain compared to home prices across Illinois and the nation, Brown said.

The average sale price of a home sold in Illinois last year was 32% more expensive than homes sold in the Rockford region. Nationwide, the average sale price of a home sold last year was nearly twice as much as figures from the Rockford area.

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Ken DeCoster: kdecoster@rrstar.com; @DeCosterKen

This article originally appeared on Rockford Register Star: Did April show signs of a cool down for Rockford's hot housing market?