Home Prices Down in Chicago and Nationwide

December 27, 2011

U.S. home prices fell in October all over the country, with Chicago real estate prices among those dropping the most.

The Standard & Poor’s/Case-Shiller home-price indexes were released on Tuesday to show that 19 of the 20 largest U.S. metropolitan areas reported lower home prices from September, and 18 of the 20 experienced year-over-year declines.

sign with a house falling down a mountain and the words "falling home values"In Chicago, home prices fell 1.8 percent from September to October. Compared to October 2010, our home values are down 4.8 percent. We are one of the cities marking the biggest drops.

“Atlanta and the Midwest are regions that really stand out in terms of recent relative weakness,” said David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Atlanta was down 5.0 percent over the month, after having fallen by 5.9% in September. It also has the weakest annual return, down 11.7 percent.

“Chicago, Cleveland Detroit and Minneapolis all posted monthly declines of 1.0 percent or more in October. These markets were some of the strongest during the spring/summer buying season.”

Nationally, everyone is hurting. The 20-city composite fell 1.2 percent from September to October and 3.4 percent in year-over-year results.

From its peak, the 20-city composite is off more than 32 percent.

But we have been getting such positive real estate news lately, you say. Ironically, the drop in home ownership and the surge in rental demand is what has spurred recent activity.

“Some of the other housing statistics posted relatively healthy figures for November, but it seems that most of the good news was confined to the multi-family sector,” said Blitzer. “Existing-home sales rose in November, but are still at a low annual rate of about 4.0 million. Single family housing starts also rose, but remain close to record lows and are still down about 1.5% versus October 2010.”

Can’t wait to see what 2012 will bring.

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