Chicago home prices about to catch up with the rest of the country

[George Alford]

Chicago home prices have been catching up with the rest of the country. The S&P released Shiller home price index for the October case states something like that both for Chicago as well as the rest of the nation. Moreover, prices were obviously seen to slip as it’s so normal at this time of the year. However, the prices had slipped, though not as much as usually happens. In fact, the drop in prices showed a different trend altogether. The single home prices were down by 1.5 percent towards the end of the year 2012 and this level was last seen in the June or July months of 2001. This was more than a decade ago.

As for the real fall in prices, then it represents a fall of 31.9 percent which is the total figure in a way. This is down from the bubble peak of September back in 2006. However, they still remain up by 11.8 percent from the low faced in March. The trends have shown a rather long term movement in all aspects. The prices happen to be at least 25.8 percent less and it definitely comes across as an overshoot to many who look at it that way.

Meanwhile, there was seen a sharp decrease in the condo prices. The condo prices went down by 0.2 percent around November 2012. Again, this level was something that was last seen in the March and April months of 2001. This drop isn’t really a small one. It’s a drop of 30.4 percent literally and that too because it comes from the peak. On the other hand, this can be considered an increase as well. This is essentially because it’s a 15.1 percent increase from the March low.

The release of the Case Shiller home price index for Chicago are eagerly awaited and especially for Chicago. This is essentially to see if the Chicago prices finally rise over that of the year before. Since this hasn’t happened in more than 5 years and even if it finally does come, then you’d see it as compelling evidence literally that the home prices have hit the bottom.

The single family home prices were down by 1.3 percent in the end of 2012 as compared to the prices of the year before, in 2011. As for condo prices, then they’re down by 0.3 percent which is a record low for the condo prices itself. For more information: https://realestatefinance.ning.com/.