Chicago Real Estate Investing

A closely watched index of local home prices jumped in June, its second straight monthly increase, though prices here remain roughly where they were in 2001.

The Standard & Poor’s Case-Shiller index of Chicago-area single-family home prices rose 3.2% from May to June but was still down 7.4% from the year-earlier level, according to a report released Tuesday. The index rose 1.7% from April to May, it’s first monthly gain since last August.

The 3.2% rise was the biggest monthly gain for the Chicago index since at least 1987, the earliest year for which data are available.

Chicago was one of 19 of 20 cites tracked by Standard & Poor’s where prices rose in June; a 20-city composite price index increased 1.1% from May, according to the report.

The increases are an encouraging sign for a housing market stuck in a five-year slump, but the weak economy, tight lending climate and high loan delinquencies remain obstacles to a recovery.

The Chicago-area price index is down 31% from its peak in September 2006 and is back where it was in July 2001.

An S&P/Case-Shiller index of local condominium prices also rose 4.3% from May to June but was down 13.4% from a year earlier. The index has fallen 29.9% from its peak in September of 2007 and stands roughly where it was in April of 2001.

via Local home price index shoots up in June | Residential News | Crain’s Chicago Business.