ROCKFORD (WREX) — A low housing supply lead to a disappointing month of may for local home sales.
Winnebago, Boone and Ogle counties saw a combined 33% dip in sales compared to May of last year.
While overall sale numbers took a tumble as well.
However, the average turnaround time to sell homes is only 51 days, which is equal to May 2019. Experts say the low supply in houses creates a difficult situation for buyers.
"When we saw our sales volume tumble about a third from the previous year, we really had a chance to look back and reflect and say what's going on here," says Rockford Area Realtors CEO Conor Brown, "and what we saw was just the lack of inventory and the hesitancy of some sellers to put their house on the market due to Covid-19."
While the low housing inventory doesn't help buyers, it does make it a great time to sell.
Jaime and Jeff Doubeck were hesitant to put their Rockford house on the market due to Covid-19, but once they pulled the trigger, they saw multiple offers come in on their home in the first week.
"I know that a few years ago I've had friends that put their houses up for sale in this same area, and their houses were on the market for three months and they didn't even have anyone look at it," says Jaime.
"We had four people look through it in a week."
The former home owners say their neighborhood isn't used to seeing that fast of a turnaround.
Nationwide, despite falling mortgage rates, mortgage applications are dropping. That's according to the Mortgage Bankers Association.
The group says mortgage applications fell for the second straight week; purchase volume was still 15% higher than one year ago.
The group adds the drop in applications could reflect a low housing supply, like in Rockford, and that limits options for prospective buyers.