Chicago home price growth dips

Local values grew 0.5 percent year over year in October, the second straight month with an increase under 1 percent. The national figure was 3.3 percent.

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This house on Carmen Avenue in Lincoln Square sold for $609,000 in October. 

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Home price growth has slowed to a crawl in Chicago, while nationwide it’s picking up speed, according to new data.

Chicago-area single-family home values grew by 0.5 percent in October compared with the same month in 2018, according to the S&P CoreLogic Case-Shiller Indices released this morning. It’s the second consecutive month of growth at less than 1 percent; the figure for September was 0.6 percent.

A year ago, home prices here were consistently growing in the 3 percent range, or about six times the current rate. Nationally, prices were growing in the 6 percent range. Price growth has slowed both locally and nationally in 2019.

In the latest report, national home price growth was 3.3 percent in October, the fourth consecutive month when it was above June’s 3.1 percent.

By comparison, the Chicago figure has been dropping since June, from 1.5 percent to the latest figure, 0.5 percent.

Among the pressures holding down Chicago’s home price growth are high property taxes and the fear of further increases, which make buyers hesitant to pay high home prices; population loss, which reduces demand for homes, and the 2017 federal tax bill’s sharp reduction in the state and local taxes that Illinois homeowners can deduct.

On a nationwide basis, the index data for October was “reassuring,” Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, said in prepared comments that accompanied the data.

“As was the case last month, after a long period of decelerating price increases, the national, 10-city, and 20-city composites all rose at a modestly faster rate in October compared to September," Lazzara said in the comments. "This stability was broad-based, reflecting data in 12 of 20 cities. It is, of course, still too soon to say whether this marks an end to the deceleration or is merely a pause in the longer-term trend.”

Since Chicago home values turned positive in November 2012, according to the index, there have been only three other months besides September and October when the Chicago figure was below 1 percent: November 2012 (0.8 percent) and August and September 2015 (both 0.9 percent).

Of 20 major U.S. metropolitan areas that the index tracks, only one had a weaker showing in the latest report. In San Francisco, home values were down 0.4 percent in October. Even that figure was an improvement: last month, home values were down 0.7 percent in San Francisco.

79彩票注册网址Chicago’s home values in October were still about 12.5 percent below their 2006 peak, according to the indices, while nationwide home values are 15 percent above their boom-years peak.

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