T
he Rockford region's housing market remains challenging for potential homebuyers, with the inventory of homes for sale hitting its fifth-lowest level on record in February. According to data from the NorthWest Illinois Alliance of Realtors, there were only 219 homes available in Boone, Winnebago, and Ogle counties last month, a total that hasn't been seen since March 2024.

    "We're experiencing one of our most demanding inventory situations," said Conor Brown, CEO of the NorthWest Illinois Alliance of Realtors. "The absorption rate is just 0.68 months, meaning it would take only 20 days to sell through our current inventory if no more homes were to come onto the market."

    Low mortgage rates locked in during the pandemic have made buyers reluctant to sell and take on higher rates, while limited new home construction has also contributed to the low inventory. Realtors are trying to encourage homeowners to consider selling by highlighting their equity gains and lower-than-historical-average mortgage rates.

    The average homeowner owns their home for 11.8 years, and in Rockford, that investment has seen a staggering 138% gain over the past 11 years. The average home price in February was $212,871, a 9% increase from last year's figure of $195,799. Homes sold at a similar pace as last year, with an average time on the market of 34 days.

    Rockford continues to rank as one of the hottest housing markets in the country, according to Realtor.com, which ranked it No. 4 in February and has held the top spot in December. The low inventory and high demand have made it a challenging market for homebuyers.