February 11th, 2013 categories: Chicago Real Estate News
The good news is that the nation’s housing markets are in recovery mode. The bad news? Chicago’s housing recovery is lagging behind, far behind.
That’s what the numbers from the S&P/Case-Shiller home price index released in late January suggest.
The Chicago Tribune recently took a close look at the widely-watched Case-Shiller numbers. What the Tribune found was that Chicago saw the smallest gain in home prices last November of the 20 markets that Case-Shiller surveys for its price index.
Chicago-area home prices in November rose just 0.8 percent. That’s the smallest positive gain recorded among the 20 major cities included in the S&P/Case-Shiller index. And the news was more depressing if you looked at how last November compared with last October. Chicago home prices fell 1.3 percent from October to November of last year, according to the index.
The Chicago numbers are especially disappointing when compared to national home prices. According to Case-Shiller, national median home prices jumped 5.5 percent in November of last year when compared to the same month one year earlier. Some markets enjoyed even stronger gains. In Phoenix, for example, home prices rose 22.8 percent in November. Detroit saw home prices jump 11.9 percent. While San Francisco enjoyed a price increase of 12.7 percent.
Of course, some of these markets had nowhere to go but up. Phoenix, for example, saw its housing prices plummet during the days of the Great Recession. The city might have enjoyed a stronger gain because its prices had fallen so much. In Chicago, housing prices certainly fell, but they didn’t fall as far as they did in markets like Phoenix and Las Vegas.
This doesn’t, though, eliminate the fact that Chicago housing prices are recovering slowly. According to the Tribune story, Chicago-area median housing prices today are roughly at the same point they were in the summer of 2001. That’s far from good news if you bought your Chicago condominium or single-family home in the last decade.