While Chicago home prices did fall slightly in the month of November, according to the most recent S&P/Case-Shiller index, the drop in home values isn’t necessarily a cause for major concern. Many home prices tend to slip during the winter months, even though many builders and new home communities offer holiday purchase incentives.
Single family home prices in the Windy City fell 1.3 percent from October to November of 2012. Other major metro areas, such as New York and Boston, have experienced similar home price decreases, which is further evidence that the price change is primarily seasonal.
In the seven-county Chicago metro area, prices may not be seeing sharp increases, but the number of homes sold is on a large upswing. November sales of attached and detached homes totaled 7,500, which is a 37 percent increase from November 2011. Home sales in Cook County increased by 32 percent, sales in the city of Chicago rose 22 percent and suburban home sales are also beginning to pick up. DuPage County experienced a 51 percent increase in home sales in December and McHenry County experienced a 53 percent increase in sales. This increase in sales is a preliminary indicator that future reports will include stronger price improvement across the Chicago area.