Home Prices in Chicago and Across the Nation Continue to Slide

Chicago home prices hover around where they were back in 2002 after a drop in value in October.
The latest Standard & Poor’s/Case-Shiller composite index was released today to show that home prices in the Chicago area fell two percent in October from September. This comes after a 1.5 percent drop from August.
price-reduced signBut we aren’t alone. Home prices in October fell in all 20 major metropolitan cities across the country.
“There is no good news in October’s report,” said David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Home prices across the country continue to fall.”
The good news for Chicago is that our home prices did not fall to new lows. Six metro areas — Atlanta, Charlotte, Miami, Portland, Seattle and Tampa — fell to their lowest levels since home prices started to fall in 2006.
Overall, the 20 top metro areas saw home prices drop 1.3 percent from September to October; economists had predicted a 0.6 percent decline.
The bad news is that year-over-year Chicago home prices have fallen 6.5 percent. That’s the biggest year-over-year decline out of all the top 20 metro regions in the nation.
“The trends we have seen over the past few months have not changed,” said Blitzer. “The tax incentives are over and the national economy remained lackluster in October, the month covered by these data. Existing homes sales and housing starts have been reported for both October and November, and neither is giving any sense of optimism. On a year-over-year basis, sales are down more than 25% and the months’ supply of unsold homes is about 50% above where it was during the same months of last year. Housing starts are still hovering near 30-year lows. While delinquency rates might have seen some recent improvement, it is only on a relative basis. They are still well above their historic averages, in both the prime and sub-prime markets.”
Well, that’s a lot of reality. Good thing a brand new year is right around the corner.
For more information on October’s index, visit standardandpoors.com.