Chicago-area home prices soar in June

Source: http://www.chicagorealestatedaily.com

The S&P/Case-Shiller index of Chicago-area single-family home prices rose 4.6 percent from May to June, according to a report released this morning. The index jumped 4.5 percent the previous month, but it is still 1.7 percent below year-earlier levels.

A 20-city composite price index increased 2.3 percent from May to June and was up 0.5 percent on a year-over-year basis, according to the report.

“We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change,” David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. “The market may have finally turned around.”

In June, prices rose for the second consecutive month in all 20 metro areas the indices track. Chicago posted the third-biggest monthly gain, after Detroit, where prices rose 6 percent, and Minneapolis, 4.8 percent.

“We are aware that we are in the middle of a seasonal buying period, but the combined positive news coming from both monthly and annual rates of change in home prices bode well for the housing market,” Mr. Blitzer said.

On a seasonally adjusted basis, the Chicago-area price index rose 1.7 percent from May to June, vs. a 0.9 percent gain for the 20-city index.

Chicago-area prices still are down about 33 percent from their peak in September 2006, according to Case-Shiller data.

An S&P/Case-Shiller index of Chicago-area condominium prices rose 4.2 percent from May to June. But the index was down 5.1 percent from a year earlier and nearly 34 percent from its peak in September 2007.