Single-family home sales in the Rockford, Ill., region rose by nearly 11% in May thanks to declining mortgage rates and pent-up demand from winter, the Rockford Area Association of Realtors said.
There were 464 homes, townhomes and condominiums sold in May in Winnebago, Boone and Ogle counties compared to 419 homes sold in the area during May of 2018.
The growth in the local housing market was more than four times the 2.5% increase the housing market experienced nationwide.
"This May ushered in the home sales upswing that we had been expecting," Realtors association CEO Conor Brown said in a news release. "Purchasing power to buy a home has been strengthened by falling mortgage rates, and Rockford buyers are responding."
Interest on a 30-year fixed-rate mortgage fell to 3.99% in May compared to 4.56% during the same month in 2018, according to the Realtors association. That's a 12.5% decline.
Sale prices are on the upswing.
The rolling three-month average home price in May of $133,302 was up slightly compared to a year ago, but it was the highest May monthly average price since 2008.
"Solid demand along with lower inventories of homes for first-time buyers have pushed the average price to a new high," Brown said.
Monthly inventory in the survey area declined 5.6% from 957 properties in May of 2018 to 903 in May of this year. There were seven new construction listings in the Rockford market in May compared to 32 new construction listings a year ago.
"Given that housing has been selling so quickly, more homes need to be built," Brown said. "Otherwise, the housing shortage will worsen."
