ROCKFORD, ILLINOIS — The Rockford area housing market is hotter than ever, with the three-month rolling average home price reaching a record $226,786 in June, according to the Northwest Illinois Alliance of Realtors.
Despite a significant drop in available homes, the market remains competitive as demand continues to outpace supply. Realtors say the surge is being fueled by a mix of low local inventory and increased interest from out-of-town buyers looking for affordable alternatives to larger metro areas.
Homes Selling at Rapid Pace
With only 179 homes listed for sale in June — down from 268 in June 2024 — the city is experiencing a more than 33% drop in available listings, tightening the market even further.
“One house is sold every two hours,” noted the Alliance, “with at least 12 homes sold every single day in Rockford alone.”
Realtor Dave Larson, of Keller Williams Realty Signature, added that the market currently has only 2.5 weeks of inventory, creating an aggressive seller’s market. “Back in 2008 to 2010, we had 18 months of inventory and homes just sat there,” he explained. “Now, everything goes fast — especially if it’s move-in ready.”
Affordability Still Attracts Outsiders
While longtime Rockford residents may be feeling the pinch of rising prices, realtors say the market still appears affordable to outsiders. Frank Wehrstein, president of Dickerson & Nieman Realtors, says homebuyers from other parts of Illinois and beyond are helping drive demand.
“For people here, affordability is starting to outpace what we are used to,” Wehrstein said. “But people from around the state and around the country see our numbers — and they’re still attracted.”
Pandemic’s Lingering Effects on Housing Supply
The market’s current inventory issues stem largely from long-term impacts of the COVID-19 pandemic, which has disrupted housing supply chains and slowed new listings.
This June marked the fourth time this year that local housing inventory has shrunk, suggesting an ongoing trend that isn’t likely to reverse quickly.
Advice for Buyers and Sellers
Real estate professionals recommend sellers present “move-in ready” homes to attract the most buyer attention in this fast-paced environment. Meanwhile, buyers are encouraged to work closely with a licensed agent, come pre-approved, and act decisively.
“Waiting could mean losing out entirely,” Larson warned. “It’s a competitive game right now.”
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