Sue Fox, @Properties. Direct 773.816.1788
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Doesn’t it feel like wherever your money is invested, it hasn’t really grown over the last decade? Much like the stock market, the Chicago-area real estate market seems caught in rewind mode, with home prices now similar to what they were back in 2001.
It’s as if the boom, and the subsequent bust, never happened — that is, if you’ve owned property this whole time. If you were unfortunate enough to buy mid-decade at the top of the market, you may be out tens of thousands of dollars if you sell now. Recent data from the Case-Shiller Home Price Index shows that Chicago single-family home prices have plunged 29% from their peak in September 2006, while condo prices have dropped 26.3% from their high point in September 2007.
This means condo prices are now back to where they stood in the summer of 2001… before September 11th, when the Dow was hovering around 11,000 (it’s at 10,172 today) and Barack Obama was a little-known Illinois State Senator from the 13th District. Chicago’s single family home prices, meanwhile, are now back at spring 2002 levels.
As a Chicago homeowner, it’s hard not to get a little depressed. On the other hand, you’d probably be in the same boat if you’d skipped buying a house and invested your cash in the stock market instead.
But what about the next 10 years? Today’s buyers now have a chance to buy Chicago-area property at prices unseen for the last decade. Where will prices stand in 2020? Will we look back at 2010 as the bottom of the market, and spend the next 10 years griping that we should have bought then, when homes were affordable?
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