FEBRUARY 2017

Rockford Houses Now Selling in 13.5 Weeks

RockfordmarkethousingsaleswereanythingbutfrozeninJanuary,withaverageprices
continuingtorise,inventoryfallingtoitslowestlevelinhistoryandhousessellinginjust13.5
weeks.

Januarysaleshighestinfiveyears
Housingsalesincreased13.6%from199propertiessoldinJanuary2016to226properties
lastmonth.ThiswasthelargestJanuarysalesvolumeinfiveyears,goingbackto2013when Risingmortgage
232homesweresold,andthesecondhighestsince2007,theyearbeforethehousing ratesfiringupthe
recessionbegan. market?

"Thepredominantsalestrendsthatwewitnessedduringthepastfewmonthscontinuedinto Thethreatofrising
thewinterbreak"saidSteveBois,CEO,RockfordAreaRealtors. mortgageratesmay
beonefactorfiring
Averagepriceupto$116,825 upthelocalmarket.
Thethreemonthrollingaveragepricerose8.5%from$107,684perhomesoldinJanuary
2016to$116,825thisJanuary.TheaverageJanuarypricewasthemostsignificantsince InDecember,the
January2011,whenhomessoldfor$117,520. FederalOpen
MarketCommittee
"WesawevidenceofastrongerthannormaloffseasonstartinglastSeptemberandOctober announcedthatit
andcontinuingintothenewyearduetopentupdemandandsurginginterestfromnewhome wasfinallyraising
buyers,"Stevesaid. thefederalfunds
rateforthefirsttime
Shortesttimetosellahomein14years inayear,raisingthe
AsignificantmilestonereachedinJanuarywasthetimeittooktosellahome.Theabsorption targetrangeforthe
rateaveraged3.36monthsor13.5weeksinJanuary,downfrom4.23monthslastJanuary,a federalfundsrate
20.5%drop.Thiswastheshortesttimeittooktosellahousein14yearsinNovember2003 from0.5%to0.75%,
homessoldinjust3.3months. effectiveDecember
15th.Whilethe
"Rockfordhomesellersareseeingthatinmanycasestheycangetapremiumpriceandthat FOMCvotedto
theyareabletoselltheirhomesquickly,atrendthatstartedlastfallandweseeextending maintainthesame
into2017,"Stevesaid. targetrangeintheir
firstmeetingofthe
Priceandsalesareexpectedtocontinueexperiencingmodestgainsoverthefirstquarter. yearinJanuary,the
"ConsumersappeartobewaitingtoseewhatthenewPresidentandCongressplanforthe groupissuedan
economy,"saidGeoffreyJ.D.Hewings,directoroftheRegionalEconomicsApplications updatewhichimplied
LaboratoryattheUniversityofIllinois."Asaresult,itmaybeseveralmonthsbeforethereis threeexpectedrate
anappreciableimpactonthehousingmarket." hikesfor2017.

Inventorylevelshitalltimelow Theaverage30year
Availableinventoryfellto1,203propertiesinJanuary,downfrom1,268propertiesin fixedmortgage
December,anddown18.2%from1,470propertiesavailableforsalelastJanuary.Thiswas interestrateforthe
thelowestmonthlyinventoryRockfordAreaRealtorshasrecordedsincefirstcollecting lastweekofJanuary
housingstatisticsin1998. was4.19%,some
10.5%higherthan
"Realtorsaretellingusthathomesaleswouldhavebeenstrongerin2016hadtheresimply the3.79%ratefor
beenenoughinventorytosatisfydemand,"Stevesaid. January2016.

"Sincetheelection,
KEYMARKETSTATISTICS demandseemsto
haveintensifiedasa
JANUARY JANUARY reactiontothe
Statistic 2016 2017 Change expectationthat
mortgagesrates
ResidentialPropertiesSold 199 226 +13.6%
maybemoving
Average3MonthSellingPrice $107,684 $116,825 +8.5% higher,"Steve
commented."The
NewListings 359 343 4.5%
threatofincreasing
MonthlyInventory 1,470 1,203 18.2% ratesinthemonths
SalesPending 567 485 14.5% aheadiscreatinga
senseofurgency."
AbsorptionRate(months) 4.23 3.36 20.5%
InterestRates(30yearfixed) 3.79% 4.19% +10.5%

MonthlystatisticsaregeneratedfromRockfordParagonMLSandincludehouse,condo,andduplexinWinnebago,Booneand
StayConnected
Oglecounties.InformationprovidedbytheMLSshallbeconsideredconfidentialandexclusivelyfortheuseofParticipantsandreal
estatelicenseesaffiliatedwithsuchParticipants,providedtheyareMLSmembers.InterestratesfromFreddiemac.comareforthe
monthofJanuary2016vs.January2017.Thedataprovidedisconsideredaccuratebutisnotguaranteed.