Well, it is official. Home values are getting better. According to the S&P/Case-Shiller 20-city index, home prices moved up 0.6% year-over-year, with nine of the 20 cities in the index showing gains. Much of this was likely fueled by the Home buyer’s Tax Credit, but psychology is a major variable in any recovery. If you believe, as many economists do, that people are generally driven by fear and greed then there is a good chance that this recovery could continue as the greed to get the best deal on a property is replaced by the fear of lost opportunities of getting a good deal.
Chicago fared fairly well in the report. While our metro area is still showing decreasing prices at -3.0%, it was far from the bottom of the barrel. Additionally, historical data shows that areas hardest hit by a contraction usually emerge the soonest. Among the top performing cities where coastal cities, which had reached unsustainable values before the crash. The good news for current shoppers is that this is the canary in the coal mine. It gives them a unique advantage of knowing that increases could be around the corner in our market and that good deals are still to be had.
Now that home prices on the move, are you ready to get pre-approved for your new home? Or are you just interested in exploring the Chicago real estate market? Either way, let me know, I’m here to help!