Sue Fox, @Properties. Direct 773.816.1788
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Archive for December, 2012
Home prices have been falling — plunging, really — in Chicago for the better part of a decade now, declining about 30% since the city’s housing market peaked in 2006. But 2012 was supposed to be different. And for most of the year, it was.
Chicago prices finally stopped their downward slide and began to turn up, little by little, as the spring and summer buying season progressed. With inventory tight, many buyers found themselves competing for available homes, especially properties in good condition in coveted neighborhoods. Multiple offers became more common and homes sold more quickly than in previous years.
But a recent survey of home prices in 20 major U.S. cities — the monthly S&P/Case-Shiller report — shows that Chicago was one of only two cities where prices actually fell over the past year. The report (which covers the most recent data, through October 2012) found that Chicago home prices slipped 1.3% over the past year. The other city where prices fell, New York, saw a 1.2% decline.
Chicago prices also fell on a monthly basis, dropping 1.5% in October over September, the weakest result among all the cities surveyed.
So what’s ahead for our local real estate market? I read these numbers, which always vary slightly from those compiled by the Illinois Assn. of Realtors, as a sign of stability. Prices are pretty much flat over last year. But after years of large declines, this is a marked change in direction. The market has now reached a turning point. It’s no longer in free fall, but prices are not appreciating yet, either.
Is this what the bottom looks like? Probably, although we may bump along here for awhile longer before prices really start to climb.
A sustained recovery depends on strong employment in the Chicago area and a decline in the thousands of foreclosures seen annually here, both of which the city has yet to achieve.
- Sizzle is back in the South Loop
- How to Buy a Chicago Foreclosure (as Supply Steadily Shrinks)
- Home prices jump 15% in 2014, but cold weather chills sales
- Lincoln Square on a Tear as Average House Price Tops $600,000
- More choices ahead for Chicago buyers as rally cools