Home prices tick upward from July

By Alex Gary

BusinessRockford.com

The average price of homes sold by local Realtors increased slightly in August compared with July, although the average sale price still trails 2007’s pace by nearly 3 percent.

Through August, members of the Rockford Area Realtors have sold 2,776 homes and condominiums for an average price of $139,433. In 2007, Realtors sold 4,206 homes and condos for an average price of $143,580.

The average price through the end of July was $138,444. The Realtors released the figures this morning.

“In the Rockford region we’re seeing our home prices hold in value,” CEO Steve Boissaid in a news release. “While national home prices are down an average of 7 percent to 16 percent over the past year, our home prices are slightly down but relatively stable.”

The National Association of Realtors’ July statistics, the latest available, showed that the median price of existing homes sold were down 7.1 percent in that month, dropping from $228,600 in 2007 to $212,400.

Sales activity remains sluggish 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.

In August, Realtors sold 373 houses, more than 35 percent fewer than the 577 sold in August 2007. Of course, the once-record-setting housing market started to cool in the second half of 2007. In August 2005, Realtors sold a single-month record of 799 homes, then just missed the mark in 2006 with 798.

Bois said sales may start to move upward in the final months of the year.

“Many of our members reported significantly increased open-house activity this past month, which is always a good indicator of potential positive movement in the market,” he said.

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