According to Case Shiller, Chicago October home prices rose 10.9% year over year, the fastest increase in 25 years.
However, compared with September, Chicago prices actually declined slightly.
From the Chicago Tribune:
“The S&P/Case-Shiller home price index also showed though, that compared with September, home prices in October fell 0.5 percent, following a month-over-month gain of 0.3 percent from August to September. The monthly decline ended a seven-month run in which local home prices rose compared to the previous month.
Home prices in the Chicago area were on par in October with their February 2003 level before the housing crash and post-crash, in December 2009.
The news was also good for Chicago-area condominium prices, which rose 14.2 percent year-over-year in October but were flat compared with September. Area condo values were akin to their levels in late 2002 as well as in August 2010.”
But mortgage rates are now significantly higher than they were this time a year ago.
Will home prices continue to rise in 2014?
Or will it be a bifurcated market with the upper bracket still seeing increases, due to low inventory, but middle and lower middle class housing prices stalling out as consumers simply can’t absorb the higher rates?
Will more homeowners decide to try and cash in- easing the inventory crunch?
Chicago home prices jump by biggest margin since 1988 [Chicago Tribune, Mary Ellen Podmolik, December 31, 2013]