This was the largest monthly total recorded this year. The rolling average price of $119,826 (average price for first five months) in May was up 1.3% from $118,257 in April. “Sales grew appreciably in May,” said Steve Bois, CEO of Rockford Area Realtors. “We achieved a 14% growth over the typical April to May sales increase, and that’s significant.”

Bois anticipates continued sales growth in the coming summer months--the heavy buying season—partly reflecting a considerable rise in consumer confidence. Consumer’s short-term outlook improved significantly in May.

After two months of significant improvements, The Conference Board Consumer Confidence Index is at its highest level in eight months. The Expectations Index rose to 72.3 from 51.0 in April. Rockford Area Realtors also see positive signs in the first-time home market.

First-time buyers made up an impressive 53% of the market in March nationally (the last month for which figures were available), 29% higher than the typical average first-time homebuyer makeup of 41%. The push is on for first-time homebuyers in the Rockford market and across the nation, largely due to the availability of the federal first-time buyer’s tax credit of $8,000.

Following the trend of the last year and a half, overall home sales in the Rockford market are down 22.9% for year to date versus 2008--1,212 homes sold in 2009 compared to 1,573 home sales in 2008. This is at about the same rate for the state of Illinois, in which homes sales
were down 20.9% through April of this year.

“There is pent-up demand, that we know for sure,” commented Bois. “Interest on the part of consumers is there but confidence to move forward isn’t yet, but on the upside, this is a buyer’s
market and will be for quite a while.”

This information for the "Rockford area" includes all of Winnebago and Boone counties.