Rockford, IL Housing Market Report

The Rockford, IL real estate market continues to demonstrate robust growth as of December 2025, characterized by a persistent seller's market. With a median home value of $169,916, the area has seen a significant 8.74% year-over-year increase. This appreciation is underscored by a perfect 1.0 sale-to-list ratio, indicating that homes are generally selling for their full asking price. While active inventory has ticked up by 6.03% to 668 units, the supply remains tight enough to keep competition high among prospective buyers.

Price trends over the latter half of 2025 reveal a consistent upward trajectory. Starting at $162,677 in July, values have climbed steadily every month, culminating in the current December peak. This momentum is mirrored in the rental market, where median rents have risen 8.45% to $1,165. The stability of the market is further evidenced by the average days on market, which has held steady at 31 days compared to the previous year, suggesting that while the market is fast-paced, it is not experiencing the frantic volatility seen in larger metropolitan hubs.

Looking ahead, Rockford remains one of the more affordable entry points for homeownership in the region, which continues to drive demand. For sellers, the current environment offers a high probability of securing asking price offers within a month of listing. For buyers, the increasing inventory provides slightly more options than last year, but the steady price appreciation suggests that waiting for a market correction may result in higher entry costs. Navigating this market requires readiness to act quickly, as the balanced days-on-market figure hides the fact that well-priced homes in desirable neighborhoods often move much faster than the 31-day average.