ROCKFORD, Ill. (WTVO) — This Spring, the weather isn’t the only thing heating up. The Rockford housing market has been on fire this year.
In April, Rockford area homes were selling for the highest prices in history.
Despite that, more than 380 homes sold last month.
Realtors say buyers have been taking part in bidding wars more than ever before, some even offering $20,000 over the asking price.
The data shows that the average home is selling within one month.
One of the main contributors to the hot market are the current interest rates, which are slightly more than 3% on a 30-year fixed mortgage.
Pat O’Gorman, the senior vice president of Stillman Bank, says he doesn’t believe they’ll skyrocket any time soon.
- 58-year-old Janesville woman shot, in critical condition
- ‘Wouldn’t be here’: Officials honor 7-year-old Chicago boy who called 911 when mom was having seizure
- Los Angeles home where Manson followers killed LaBianca couple sells for $1.875 million
- McDonald’s manager allegedly quits mid-shift, informs customers via sign posted in drive-thru lane
- Video: Young children caught between masked gunman, victim nearly shot on New York sidewalk
“I don’t think we’ll see interest rates in the double digits, or anything like that,” he said. “I think they’ll stay in the low to mid-threes.”
Those low interest rates have many rushing to buy a new house, leaving the market with extremely low inventory.
“It’s so low. I mean, it’s unbelievably low,” said Rockford Area Realtors CEO Conor Brown. “I would say we have never been lower, in terms of our overall inventory.”
Brown says in Winnebago, Boone and Ogle county area, there’s only a one month supply of houses.
“In fact, we probably would welcome some foreclosures in the market,” he said.
That large demand means buying a home comes at a higher price. The area has seen a 14% increase in the selling price, up an average of $20,000 from the year prior.
Both Brown and O’Gorman still maintain it’s still a good time to make a purchase.
“We’re still incredibly affordable. We’re one of the most affordable markets in the country,” Brown said.
O’Gorman added, “You could buy a house in the Rockford area – principal, interest, taxes and insurance – for $750 to $800 a month, and that’s what rents are going for.”
Brown said he does not foresee housing prices falling any time soon.