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Single-family home prices and sales figures soared to historic heights in the region to start the new year despite steadily rising interest rates.

While the local real estate market is vibrant, inventory remains low and consumer budgets are being impacted by inflation, according to Rockford Area Realtors. 

The three-month rolling average price of a property in Winnebago, Boone and Ogle counties rose to $166,493 in January. That’s a 5.4% increase compared to figures from the same month in 2021. It was also the highest ever average January price paid for a home in the three-county region.

Total sales volume rose nearly 4% to 329 properties sold in January compared to 317 homes sold during the same month last year. 

Rockford real estate:With fewer houses on market, Rockford-area homes are selling above the asking price.

"Our values in the Rockford region are still amazing when you look at state prices and national prices," said Mike Lunde with Gambino Realtors. "We are a very good value even at $170,000 average price. We see people all of the time coming from Chicago moving out here and buying a home and not having any debt on it. So, as people see what a great value we are, they're taking advantage of it."

The latest sales figures for the region are in stark contrast to nationwide totals. 

Pending home sales declined by nearly 6% in January, according to the National Association of Realtors. 

Of the four major U.S. regions, only the West showed an increase in month-over-month contract activity. 

While home prices in the region continue to rise because of a lack of inventory, the number of new listings — a measure of sellers putting homes on the market — rose more than 17% in January.

“We are excited to see the jump in new listing activity for January,” Rockford Area Realtors CEO Conor Brown said in a news release. “For the past few months, listings have only been slightly ahead of the previous year’s numbers. Otherwise, they have been trending below historical levels. This limited availability of homes is an ongoing challenge to buyers successfully finding and closing on a home.”

Mortgage rates continued their steady climb last month, with some indices rising above four percent. 

The average 30-year-fixed rate mortgage rose to 3.92% for the week ending Feb. 17. It’s the highest level since May 2019.

Rockford home prices:After 'unparalleled' 2021, here's what to expect in Rockford's real estate market in 2022

While mortgage rates are on the rise, they are still a comparative bargain, according to Pioneer Real Estate agent Ginger Sreenan.