(AP Photo/Paul Sakuma)By Mary Ellen Podmolik
| Home prices in the Chicago area fell to their lowest level since the housing crisis began and now stand at a level not seen since May 2002, according to a widely watched index released Tuesday.
The S&P/Case-Shiller Home Price Indices found that for the largest 10 cities, home prices improved 3.1 percent.
That wasn’t the case in the Chicago area, however, where home prices fell 2.3 percent in March, from February, and were also down 2.3 percent from a year ago.
Economists at Standard & Poor’s said nationally, it appeared that prices had improved from the “crisis” lows previously recorded but the now-expired home buyer tax credit and rising foreclosures are dampening further home price appreciation.
“It is especially disappointing that the improvement we saw in sales and starts in March did not find its way to home prices,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s in a statement. “Now that the tax incentive ended on April 30th, we don’t expect to see a boost in relative demand.”
S&P bases its data on home prices for about 70 percent of the nation’s housing stock.
Yeah, and yesterday all the media reported on how median prices were up. Just goes to show you that the median prices are bogus.
Single family home prices are now down 29% from the bubble peak and condo prices are even worse, falling to August 2001 levels. You can see the long term data and the trendline here along with other Chicago area real estate statistics:
http://blog.lucidrealty.com/chicago_real_estate_statistics/
Time for the feds to do what they do best: throw more good money after bad.
If home prices are dropping, why would you buy a home so that you could build equity? seems like all people are doing is holding onto something that is declining in value – sort of like a used car. if home prices are not rising, but are falling, then buying a home means you are losing money.
Didn’t they just report 2 days ago that prices were up?
Yet… Your RE taxes are at least double what they were in 2002.