Chicago home prices increased again in the August Case-Shiller, as home prices across the U.S. continue to defy traditional trends for the industry.
By Peter Ricci
Chicago home prices increased 0.7 percent from July to August in the latest Case-Shiller Home Price Indices, the economic measure from Standard & Poor’s (S&P) that is considered the authority on home prices in the U.S.
That increase follows a 2.7 percent increase in July for Chicago home prices. Though Chicago was one of only three cities to post negative annual returns (prices were down 1.6 percent from last August), its monthly gains have been a marked break from its home price declines of early 2012.
Chicago Home Prices – Reflective of National Case-Shiller
The home prices for the national housing market were similarly encouraging, as S&P reported:
- Home prices increased 0.9 percent for both the 10- and 20-City Composites, which collect home prices for the 10 and 20 largest metropolitan areas in the U.S.
- This is the fifth straight month of monthly increases for both composites, and interestingly, the increases come at a time of the year when home sales traditionally decline, and prices with them.
- Of the 20 cities S&P tracks, 19 posted positive monthly returns.
- Also, the 10- and 20-City Composites increased annually by respective amounts of 1.3 and 2.0 percent, which are improvements over July’s yearly increases of 0.6 and 1.2 percent.
David M. Blitzer – Home Prices “Climbing”
David M. Blitzer, the chairman of the Index Committee at S&P Dow Jones Indices, said that not only do home prices continue to increase, but they are one of several components pointing to a housing recovery.
“The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market,” Blitzer said. “News on home prices confirms other good news about housing. Single family housing starts are 43 percent ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows. Further consumer confidence continues to rise.”