The Chicago area's housing recovery continued to lag that of other cities and the nation, as prices in November fell 1.3 percent from a month earlier, according to a widely watched barometer of the housing market.
On an annual basis, home prices in the Chicago area rose only 0.8 percent in November, the smallest positive gain recorded among the 20 cities included in the S&P/Case-Shiller home price index, released Tuesday.
Nationally, home prices rose 5.5 percent annually for the 20-city composite. Much of that can be traced to market improvements in once hard-hit places such as Phoenix, where home prices have risen 22.8 percent in 12 months. Other cities recording strong yearly increases included Detroit, up 11.9 percent; Las Vegas, up 10 percent; San Francisco, up 12.7 percent; and Minneapolis, up 11.1 percent.
"Housing is clearly recovering," said David Blitzer, chairman of S&P Dow Jones Indices' index committee. "Prices are rising as are both new and existing home sales."
Most cities saw prices decline in November from their October levels, which Blitzer tied to the market's typical winter weakness.
Nevertheless, Chicago turned in the worst monthly performance among the 20 cities. It was the third consecutive monthly decline for local home prices, which showed signs of strength earlier in 2012. Local prices are on par with their June 2001 levels.
Condominium values in the Chicago market also fell for the second consecutive month. In November, they were down 0.9 percent from October but rose 2.7 percent from November 2011.
Strong foreclosure activity, and the resulting sales of those properties at steep discounts, has held down local home prices and the market's recovery. In 2012, Illinois had the fifth highest state foreclosure rate in the nation, topped only by Florida, Nevada, Arizona and Georgia, RealtyTrac reported last week.
Also hindering the local market's recovery is the foreclosure process in Illinois, a judicial state where all foreclosures are processed by the court system. RealtyTrac said it took an average of 697 days to complete a foreclosure in Illinois last year, meaning those properties may not be listed for resale for two years. During that time, their condition can deteriorate, bringing down the value of that home as well as others in the neighborhood.
Another report issued Tuesday showed some improvement in foreclosure activity in the Chicago area, although mortgage delinquencies and foreclosures here continue to outpace those at the national level.
Housing data provider CoreLogic said that 5.57 percent of mortgages in the Chicago area were in some stage of foreclosure in November, compared with 5.7 percent in October and 6.37 percent in November 2011.
Also, 10.10 percent of mortgages in the Chicago area were considered seriously delinquent, meaning they were at least 90 days past due in November. That compares with 10.19 percent in October and 10.72 percent in November 2011.
The national foreclosure and mortgage delinquency rates were 2.97 percent and 6.45 percent, respectively, in November.
mepodmolik@tribune.com | Twitter @mepodmolik
Chicago home price recovery lags
This article
Chicago home price recovery lags
can be opened in url
http://newscoming.blogspot.com/2013/01/chicago-home-price-recovery-lags.html
Chicago home price recovery lags
