Rock River Valley home-sale prices, total sales down in Feb.

By Alex Gary

BusinessRockford.com

The average sale price of homes and condominiums in February dropped nearly 3.6 percent in February compared with February 2007, the third time in the past five months that the average sale price was down year over year.

February’s average sale price of $130,958, compared with $135,816 last February, was the lowest for February since 2004 when homes and condos sold for an average of $107,478, according to the Rockford Area Association of Realtors.

Buyer activity wasn’t any better. Members of the Rockford Realtors association sold 267 homes in February, more than 31 percent fewer than February 2007 and the lowest February total since 1999.

The continued sluggishness is tough on the more than 1,200 agents in the association that rely strictly on commission for their livelihood. Through the first two months, sales are running more than 35 percent below 2007 totals.

The housing market locally and nationally is suffering from tightened credit keeping many borderline borrowers out of the housing market.

The weather hasn’t helped either. A record amount of snow fell in the Rock River Valley from December through February.

Locally, the average sale prices have seen little or no increase over the past year, which is a positive in comparison with formerly hot housing markets in the southwest and on the East and West coasts, which have seen steep price declines.

But while local home sellers have been able to hold the line on sale prices, it’s taking longer for them to get the price they are looking for. The average time it took to sell the homes and condos in February jumped to 91 days. That was 20 days longer than February 2007 and the longest average time for a February since 1998.

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

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