The Real Deal Chicago

Chicago area home values rise, but lag national average

A new report shows the area’s home values ticked up 3 percent for 6th straight month
November 27, 2018 11:00AM

Chicago bungalows (Credit: iStock)

Chicago area home values continue to rise. That’s the good news. The bad news is they still lag the nationwide average.

Home prices rose 3 percent in September, the sixth straight month of growth, according to S&P CoreLogic Case-Shiller. The data was released Tuesday morning and reported by Crain’s.

The national average of 5.5% continues to outpace the Chicago figure, but nationwide growth in home values has been slowing. Six months ago, the nationwide average price increase stood at 6.5 percent, according to the report.

Sales of new and existing homes peaked across the U.S. in November 2017, according to David Blitzer of S&P Dow Jones. Experts said rising interest rates and prices that have outpaced income growth are partly to blame.

Existing home sales were down 9.3 percent from a year ago, and new-home construction starts were down 8.7 percent, according to the report.

In Illinois, shrinking inventory has pushed prices up but also driven sales numbers down.

Still Chicago is the second-most affordable place to buy a house right now in the United States, and it’s expected to remain buyer-friendly for the next few years, according to consulting firm John Burns Real Estate. [Crain’s] — John O’Brien