Chicagoland Home Prices Second Best in Nation in Case-Shiller

by Peter Thomas Ricci

Home prices in the Chicagoland region posted excellent returns in the latest Case-Shiller.

Home prices in the Chicagoland metro area rose 1.4 percent from May to June, coupled with a 6.6 percent increase from June 2013, according to the latest Case-Shiller Home Price Indices from Standard & Poor’s.

Though the area’s yearly gains were underwhelming, its monthly gains were tied for the second best in the nation; only New York, with 1.6 percent, had a stronger monthly return.

Home Prices Gains Continue to Slow

On the national scale, though, home prices continued to slow:

  • The 10- and 20-City Composites gained 8.1 percent year-over-year, while the National Index rose 6.2 percent in the 12 months ending in June 2014; both numbers are considerably lower than in months past, when home price gains were consistently in the double digits.
  • Every city in both composites saw its yearly returns worsen.
  • Monthly, the National Index was up 0.9 percent, while the 10- and 20-City Composites were up 1.0 percent.
  • On a good note, of 20 cities tracked by S&P, none saw price declines.

Blitzer – “A More Normal Housing Sector”

David M. Blitzer, the chairman of the Index Committee at S&P Dow Jones Indices, said that though home price gains continue to ease, other market indicators suggest a balanced housing market.

“For the first time since February 2008, all cities showed lower annual rates than the previous month,” Blitzer said. “Other housing indicators – starts, existing home sales and builders’ sentiment – are positive. Taken together, these point to a more normal housing sector.

“Bargain basement mortgage rates won’t continue forever,” Blitzer continued. “Recent improvements in the labor markets and comments from Fed chair Janet Yellen and others hint that interest rates could rise as soon as the first quarter of 2015. Rising mortgage rates won’t send housing into a tailspin, but will further dampen price gains.”

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