The tri-state area’s housing market continued to see rising prices in the past six months, along with mortgage rates firmly elevated compared to those many homeowners received when buying homes in recent years.
The Dubuque area saw a modest increase in its inventory of homes for sale. Northwest Illinois’ inventory plummeted to half its January stock by May, while southwestern Wisconsin’s inventory was low in Platteville.
According to East Central Iowa Association of Realtors, 709 residential homes were sold in Dubuque from Jan. 1 to June 30, an 8% increase over last year’s 657 in the same six months.
The average mortgage rate was 6.5%, similar to 2024’s range of 6.08% to 7.22%. The average sale price of a home was $278,611, compared to $267,276 in the same stretch of 2024.
Dubuque homes for sale spent a median of five days on the market as of June. There are currently 410 homes on the market, up 13% from 2024’s average.
“(This) market appears to be strong for sellers, but it is softening a bit,” said Tracy Demmer, president of the association. “I believe some buyers are holding out (because they have) previous lower interest rates they may have locked in a few years ago. … My personal advice to any buyer: If you love the home, go for it. The interest rate is temporary. The home may never come back, and the ability to refinance is always there.”
In Illinois, housing sales reached 310 from January to May in Stephenson, Jo Daviess and Carroll counties. Meanwhile, stock fell from 200 in January to 97 in May.
Pricing ballooned from 2024’s ending three-month rolling average of $226,096 to May 2025’s $247,890. The average mortgage rate was 6.8% for January to May.
The five-month period’s average days on the market hit 70.2.
“The spring market has been incredibly tight for buyers,” said Conor Brown, CEO of NorthWest Illinois Alliance of Realtors. “With half as many homes on the market since January, there are fewer to choose from. There simply is not enough inventory to meet current demand. This is frustrating buyers. Springtime brings out more buyers to the market, so competition is fierce. Average sales prices have increased seasonally as well as year-over-year. … If mortgage rates were to drop to somewhere in the 5% range, more people who are thinking about selling will.”
The market’s absorption rate score — how long it would take to sell the whole housing inventory without new listings — is one month. Brown said a healthy market would have a four- or six-month supply of homes.
He recommended buyers begin their search process by getting pre-approved for a loan, preferably with a local lender who will know the best grant opportunities.
“In this competitive market, they may need to search for homes that are less than what they are approved for in case the buyer gets into a bidding war,” he said.
Sales in Grant, Iowa and Lafayette counties in Wisconsin totaled 260 from Jan. 1 to May 30, compared to 264 in the same period last year.
The median price of a home was $265,513 in Lafayette County, $204,500 in Grant County and $337,500 in Iowa County, according to Wisconsin Realtors Association. The average mortgage rate was 6.375%.
Renee Winkler, co-owner of Platteville Realty, said an affordable home price would be around the $250,000 range for most area residents, but many are only hoping for something under $300,000.
“I believe that most people in Platteville would say there’s been a shortage of affordable housing for some time,” she said. “Property values in southwest Wisconsin are holding steady, and I think there’s some uncertainty in buyers’ minds about interest rates. I think they’re hoping we’ll see a drop in that rate, so they’re still just kind of waiting.”