Realtors association has slowest July in 12 years

By Alex Gary

BusinessRockford.com

Rockford Area Realtors members sold 369 homes and condominiums in July, the lowest total for that month in at least 12 years, as the slowdown in real estate activity shows no sign of picking up.

The rolling average sale price dropped as well, from $140,459 at the end of June to $138,444 through the end of July. The average price at the end of July is running 3.5 percent behind 2007 average prices. The association’s statistics only include sales that involve a member of the association.

July’s sales total was the lowest for that month dating back to before 1996, which is as far back as the Register Star has monthly numbers. Sales fell 20 percent compared with 461 homes and condos sold in June, although that is not unusual. July sales have been lower than June sales the past six years.

“As we get into the dog days of summer, July housing typically trends down as this month is the busiest vacation month,” association CEO Steve Bois said in a news release, “with flooding and high fuel prices adding to the downturn.

Still, Bois believes activity may pick up in the remainder of the second half thanks to a new housing bill that could cut up to $7,500 off the federal tax return of anyone who buys a house before the end of next June, when it expires. Effective immediately, the bill requires that buyers have to either be buying their first home or renters who haven’t owned a house in the past three years.

Sales activity remains sluggish here and nationally because a record number of foreclosures in the past two years has caused mortgage lenders to raise credit standards and mortgage-insurance companies to be much more conservative as well, locking many would-be buyers out of the market.

Reach Assistant Business Editor Alex Gary at 815-987-1339 or at agary@rrstar.com.