Given the way the real estate market in Chicago has been since the expiration of the tax credit it’s hard to believe that home prices in the area actually rose in May. According to the Case Shiller home price index released today, single family home prices in the Chicago area rose by 1.2% in May, while condominium prices rose by 2.7%. The graph below shows the long term history of these two indices along with a trendline (in red).
As you can see from the graph, that’s quite a recovery in condo prices but don’t get too excited just yet. The Case Shiller index is based upon a 3 month average of home sales so these numbers are probably still being impacted by the flurry of activity caused by the government meddling in the housing market (i.e. the tax credit). I can assure you the market is pretty dead right now. Just wait until May and June contracts start hitting these statistics.
Single family home prices have now dropped a total of 27.7% from their peak level in September 2006 and 1.4% in just the last year. This puts single family prices back to the level of June 2002. Condominium prices have now dropped a total of 20.4% from their peak level in September 2007 and 5.2% in the last year, bringing them back to December 2002 levels.