Zillow is out with a nationwide report on home prices.
Prices fell 7.3% in the Chicago area (an 8-county area, including Northwest Indiana) in the second quarter compared to 2007.
Zillow reports that a third of all homes sold in the Chicago area in 2006 and 2007 are now underwater (meaning the owner owes more on the house than it is worth.)
Zillow also estimates that the top of the housing market in Chicago was the second quarter of 2006. The company believes that values have fallen 8.8% since that peak.
From the Sun-Times:
They are no surprise to Paul and Stephanie Moretta, who said they had to drop the price of their Rogers Park condo three times before finding a buyer. They bought the three-bedroom, two-bath home in 2003 for $339,000 and first put it on the market 15 months ago for $429,000.
They have a buyer at $365,000 and feel fortunate to be making a profit. “This is really the only way we were able to sell,” said Stephanie Moretta, 31. The Morettas are expecting their second child and are buying a bigger home in Peterson Park in what amounts to a home trade with their condo buyer. Their Keller Williams agent realized another client was selling a home that fit the Morettas’ needs and that seller wanted to buy a condo.
Paul Moretta, 40, said that in 2003 he sold a condo in less than two months. “This time it was a little bit scary,” he said.
Zillow said 37.8 percent of Chicago-area buyers in 2006 now owe more on their mortgage than their homes are worth. For 2007 buyers, the percentage is 31.1, Zillow said. Conversely, it found that only 3.1 percent of 2003 buyers have negative equity.
The company tracks another distress signal, the percentage of homes sold “for a loss,” which Zillow defines as selling for less than the property’s prior sale, regardless of how long ago. In the second quarter, 19.8 percent of homes in the region sold for a loss, vs. 13.4 percent for the second quarter of 2007 and just 4 percent for all sales in the last five years.
Read ’em — and weep [Sun-Times, Aug 12, 2008]