The latest Case-Shiller Home Price Index* is out – Chicago home sale prices in September, 2013 were at March, 2003 (and January, 2009) levels, and at their highest since September, 2009!
The Chicago metropolitan area continues to recover real estate market value, although to no one’s surprise, the rate of increase is slowing as we enter the Fall months.
Autumn is typically a time when prices tend to fall from the Spring/Summer highs, so it is hard to predict whether we will see a trend to more stable or slightly decreasing prices. Economic indicators remain positive, though, so any declines in value over the next few months will most likely be seasonal.
Chicago-area home prices rose 9.7% in September from a year earlier. Although we all cheer this robust price recovery, over the long run, it is not necessarily healthy for the market. As prices rise, affordability falls, which puts a new purchase out of reach for more and more buyers. In addition, markets that are too heated can lead to price bubbles and the inevitable pop–been there, done that, no thanks!
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*The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.