Rock River Valley home sales slow but prices rise in June

By Alex Gary

BusinessRockford.com

Boone, Winnebago and Ogle County Realtors sold the fewest homes in June since 1997 although the year-to-date average price showed a strong increase.

In June, according to a news release from the Rockford Area Realtors, members of the association sold 461 homes. That was up slightly from the 455 sold in May but down 29 percent from June 2007’s total of 650.

For the year, sales are running 33 percent below 2007 levels. The Realtors association data only includes transactions involving a member of the association.

But June sale prices were a bright spot. The year-to-date average sale price increased to $140,459, up $2,200 from May.

“There’s definitely a silver lining that we can see in this data,” Steve Bois, association executive director, said in the release. “A $2,200 increase in the rolling average home sales price shows that homes are holding their values in Winnebago, Boone and Ogle counties, if not slightly increasing.”

The year-to-date average price still is 2 percent lower than the $143,356 average price through June 2007.

Sales activity remains sluggish here and nationally because a record number of foreclosures in the past two years have caused not only mortgage lenders to raise credit standards but mortgage-insurance companies are much more conservative as well, locking many would-be buyers out of the market.

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

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