04/06/2026
We get asked ALL.THE.TIME by sellers and buyers alike......"When is a good time to sell/buy?" The answer is NOW and hears why!👇
Market Watch-Feb 2026-NorthWest Illinois Alliance of Realtors
Early signs show what Rockford housing market is really looking like this year: more balanced with opportunities for both sellers and buyers.
With two months under its belt, the 2026 Rockford housing market is shifting toward a more balanced environment with moderate price growth, increased inventory, and slightly eased mortgage rates.
“The spring market is offering something rare in 2026: predictability” commented Conor Brown, CEO, NorthWest Illinois Alliance of Realtors. “The market will favor buyers with more choices as Baby Boomer downsizing increases inventory with local micro-market trends dictating where those houses fall.”
Largest February inventory since 2020: up 41.1%
First, good news for buyers, who have been held back by low inventory levels over the last year. After nine straight months of declining inventory, it was the fifth straight month of year-over-year inventory increases. Inventory shot up a remarkable 41.1% from 219 single-family homes, townhouses and condos on the market last February to 309 this February—90 more homes to choose from.
February’s inventory of 309 properties was the largest inventory for a February going back seven years to 2020. And the last five-month run of year-over-year inventory increases was May to September 2024.
Prices up 10.7% higher, but still below the record high
Another positive market trend for home buyers is continued moderate price growth. February’s three-month-rolling average price of $236,363 exploded 10.7% higher than last February's average of $213,541, an increase of almost $23,000. Homes in the Rockford region are appreciating by $1,900 a month. While this creates some urgency with buyers, it is still lower than the all-time high of $242,241 last September (the fifth straight month of lower prices since the market hit the all-time high).
“Pricing is the question on everyone’s mind,” commented Conor. “While many potential buyers are currently priced out of the market in various cities, most Rockford area Realtors agree the area’s extreme housing affordability is a big strength of the market. Our prices are so reasonable, we continue to draw buyers from the Chicago suburbs and across the country.
Rockford houses $62,000 to $161,000 less than state and U.S. homes
The statewide median price for a home of $299,000 in February was $62,637 higher than the Rockford average of $236,363, some 26.5% higher. The nationwide price of $398,000 in February was $161,637 higher than the Rockford average, 68.4 % higher.
“Nationally, we're not expecting a drop—more like modest appreciation of one to two percent,” Conor explained, "but the real story is how much things will vary locally. Some neighborhoods will soften, others will stay strong. 2026 is going to be a micro-market year where neighborhood-level data matters way more than marketwise averages.”
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