A pattern of falling ‘distressed property’ sales in the Rockford area is helping home prices recover to its best overall average sale price since 2009.
The three-month rolling average price of a home in now $123,064 according to the Rockford Area Realtors Association, representing an increased trend in home prices for every month so far in 2016.
One reason is because distressed property sales, which include foreclosures, short sales, and HUD owned properties made up just 10.15% of all sales. That’s the lowest number since Rockford Area Realtors began tracking the figure in January, 2013.
“Steady economic growth in the Rockford area has supported strong home-price appreciation here,” commented Steve Bois, CEO, Rockford Area Realtors in a news release. “With the National Association of Realtors has predicted a 5 to 6 percent increase in home prices nationally this year, the Rockford market has experienced a robust 8.7 percent increase in the first seven months of the year.”
Lack of home buyers remains an issue, however, as the number of sales remains essentially flat. RAR reports that 400 homes were sold in July, fewer than the 421 homes sold in July of 2015. For the year, 2406 have been sold to day compared to 2388 sold over the same period a year ago.
Even so, Boies notes that while demand has remained consistent, supply has gradually decrease because the inventory of homes in Rockford continues to drop as more first-time home buyers are entering the market.