December 31, 2008 - Standard & Poor’s/Case-Shiller 20 city composite home price index was made public yesterday and the numbers probably aren’t surprising to anyone. The study keeps track of price changes in 20 large city markets across the U.S. and the 18% drop from October 2007 to October 2008 was the biggest ever recorded in the 21 years they have been keeping records. The numbers are crunched from tracking repeat sales of single-family homes in a given area.
Prices for single-family homes have been going down for 22 straight months now. In fact, current home prices have regressed to what they were in 2004. Prices seemed to be at their highest level in July of 2006, and since then they have dropped about 24%. The markets with the sharpest declines are Phoenix, AZ with a 32.7% drop, Las Vegas, NV with a 31.7% drop and San Francisco, CA with a 31% drop.
But Chicago managed to keep a little ahead of the national free fall with a 10.8% drop from October 2007 to October 2008. This is at least a little encouragement for owners of Chicago real estate. If Condos In Chicago can manage to retain more of their value even with major dips in sales numbers, then weathering the market storm may be possible for more home owners. Chicago home prices may not rebound any time soon, but they aren’t falling off the cliff as fast as other national markets either.