Chicago Home Prices Down, But Not By Much
December 30th, 2009 categories: Chicago Info/News, Chicago Neighborhoods, Economic Recovery, For Buyers, For Homeowners, For Sellers, Housing Market
The story’s been the same throughout much of 2009 in Chicago: Average city housing prices are lower today than they were a year ago.
This didn’t change in November, according to the latest data released by the Illinois Association of REALTORS®. But in a bit of a silver lining, sales prices didn’t fall by all that much in the month.
The REALTORS® association reported that the median housing price in the city of Chicago for condominiums, single-family homes and townhomes stood at $215,000. That’s down 3.4 percent from the median sales price of $222,500 in the city one year earlier.
This isn’t the best of news for Chicago home sellers. After all, they’re trying to get the best prices for their homes. But the fact that the median sales price was down less than 4 percent is a good sign for the health of the local housing market.
The numbers tell me that housing prices in Chicago are finally reaching a stable point. Let’s face it, local home prices soared too high here during the height of the residential housing boom that ended in mid- to late-2006. These prices needed to fall. Of course, the process has been painful for home sellers and homeowners alike. Sellers are no longer able to name their price and then watch as buyers fight over their property. Owners are watching helplessly as their condos and single-family homes, even those in neighborhoods such as Lincoln Park, Lakeview and Lincoln Square, lose value. In fact, some studies suggest that about 15 million U.S. homeowners owe more on their mortgage loans than what their homes are worth.
But as painful as the process has been, it is an important one. There will come a day soon – hopefully in the coming year – when housing prices are no longer lower today than they were a year or two years ago. When that day arrives, we’ll know that housing prices have finally reached equilibrium.
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