Last week we reported that August sales of real estate in Chicago were higher than they have been in almost five years. This week, it’s positive news on home values.
According to the Standard & Poor’s/Case-Shiller Home Price Index for July, all 20 U.S. cities in the composite recorded an increase for the third consecutive month. In Chicago, that improvement has been seen for four straight months.
From June to July, average Chicago home prices rose 2.7 percent, one of the biggest increases for the month on the index: only Detroit and Minneapolis posted greater improvements.
Still, a housing recovery is going to take time. The Chicago real estate market is one of only four on the index where average home prices sit lower than they were in July 2011.
In fact, according to the Case-Shiller home price index, Chicago home prices are down 30.8 percent from their peak in September of 2006 and are sitting at levels similar to where they were back in September of 2001.
But movement is in the right direction in Chicago and the rest of the nation.
According to the Case-Shiller Index, average U.S. home prices in the 20-City Composite rose 1.6 percent in July and 1.2 percent in year-over-year results.
“The news on home prices in this report confirm recent good news about housing,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Single-family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing.
“All in all, we are more optimistic about housing.”