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Mortgage rates soar, national and state housing markets cool in March, but not Rockford

Mortgage rates surged more than one full point in February, jumping to 4.17% from slightly above 3% since the start of the year.

Data across the U.S. and Illinois housing markets suggest that many buyers are finally getting exhausted by declining affordability and stiff competition for homes. But, not so in the Rockford market.

Sales fall 9.2% in Illinois, up 3.6% in Rockford

At a year-on-year basis, sales fell by 4.5% in March across the country and 9.2% in Illinois, but rose 3.6% in Winnebago, Boone and Ogle Counties, growing from 389 homes sold last March to 403 this March.

“With mortgage interest rates moving up buyers are not sitting on the sidelines, but seizing opportunities they find,” said Conor Brown, CEO, Rockford Area Realtors. “This is a sign of a healthy, steady Rockford housing market, with opportunities for both homebuyers and sellers.”

Average price up 4%

The region-wide three-month rolling average price went up 4% from $152,482 in March 2021 to $158,603 to March 2022. In just two years the average price rose more than $21,000, from an average $136,629 in March 2021 to $158,603 this March.

“Home price gains remain strong and homes are selling rapidly, in just 26 days in March,” Conor said. “The housing market is starting to feel the impact of rising mortgage rates and inflation is taking a bite out of purchasing power. March sales volume increases were the lowest in the last five months.”

Inventory stabilizing

Inventory, while still historically low, may be stabilizing. Inventory levels at the end of March were flat, with 255 properties available for sale, the same number as at the end of March 2021. This is the first time in the last 26 months that year-over-year inventory levels haven’t fallen significantly.

 

New listings also hit their highest level in 6 months with 441 new properties coming onto the market in March, but were down 3% from last March when (455 new properties went up for sale).

 

Conor said the market is juggling a variety of dynamics at play. “The number of homes listed for sale remains low, sales prices continue to increase and inflation is a source of concern for potential homebuyers” Conor said. “Yet, despite all these challenging market factors, the Rockford housing market continues to grow.”