Chicago-area home prices hit 11th month of double-digit price increases | Crain's Chicago Business

2022-06-04 02:07:07 By : Ms. Ada zhang

This house on Ravenswood Avenue in Lakeview sold for $663,000 in March. 

The Chicago-area's streak of double-digit home price increases hit its 11th straight month, according to a prominent national index.

Single-family home values in the Chicago area rose by 13% in March from a year earlier, according to the S&P CoreLogic Case-Shiller Indices released this morning.

It was the 11th consecutive report from the index that put Chicago-area home price growth at 10% or more, and the fourth of those when it was 13% or more.

This news does not conflict with Crain’s report earlier this month that Chicago home prices are going down. That report, based on data from Illinois Realtors, was on home prices in the city specifically, while this one is on the metropolitan area. Case-Shiller also lags the Illinois Realtors reports by a month.

Price increases not only here but nationwide were driven in part by short inventory and eagerness to lock in purchases before rising interest rates whittled down buyers’ affordability. Nationwide, home prices were up 20.6% in March, the biggest increase in more than 35 years of the index’s data.

Nationwide, March was the 16th consecutive month with double-digit increases.

“Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” Craig J. Lazzara, managing director at S&P Dow Jones Indices, said in prepared comments that accompanied the data.

“Mortgages are becoming more expensive as the Federal Reserve has begun to ratchet up interest rates,” Lazzara said in the comments, “suggesting that the macroeconomic environment may not support extraordinary home price growth for much longer. Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call.”

Chicago’s price growth, while vigorous, remained near the bottom for big cities. Of 20 major U.S. cities the index tracks, only two had slower price growth than Chicago in March: Minneapolis (12.4%) and Washington, D.C. (12.9%).

For the past five years, Chicago has consistently ranked at or near the bottom of the 20 cities, which should offer a measure of consolation for potential homebuyers here. Affordability is shrinking much more slowly here than in Tampa, Fla., where home prices were up 34.8% in March, Phoenix (32.4%), Miami (32%) and Dallas (30.7%).

Staying current is easy with Crain's news delivered straight to your inbox, free of charge. Click below to see everything we have to offer.

Get the best business coverage in Chicago, from breaking news to razor-sharp analysis, in print and online.

130 E. Randolph St. Suite 3200 Chicago, IL 60601 E-mail our editor (312) 649-5200