Home Prices Up For 4th Month In A Row
The spring selling season revealed improvements in home sale prices in many major cities across the U.S. Including Chicago, which had one of the biggest price inclines from June to July.
July marked another month of positive price gains forresidential real estate, according to the latest Standard & Poor’s/Case-Shiller Home Price Index. Seventeen of the 20 cities tracked by the index posted price improvements in July, indicating an overall four-month run of price inclines nationwide.
Standard & Poor’s/Case-Shiller index is considered one of the most credible measures of U.S. home price activity. The report follows 20 major American cities, which encompass roughly half of the nation’s housing stock. It weighs prices against January 2000 to establish a sliding 3-month average. The most impressive percentage increases for July were recorded in Chicago, Detroit and Minneapolis, according to the index’s most recent numbers.
Industry analysts believe the recent upturn in nationwide home prices is due in large part to seasonal selling. The traditional spring/summer selling season is historically relied upon to carry the real estate market through less active periods (mainly winter—when harsh weather conditions and major holidays suppress regular buying activity).
It’s important to keep in mind that this latest report is a short-term assessment of what’s happening in the U.S. housing market. Real estate experts assert that its results are isolated and may or may not be related to a more sweeping recovery of real estate prices. The chairman of Standard & Poor’s index committee, David Blitzer, has said, “While we have now seen four consecutive months of generally increasing prices, we do know that we are still far from a sustained recovery.”
As has been the case for much of the year, tighter lending requirements and high unemployment have made it difficult for the housing market to gain footing for large-scale stabilization. Still, it is a great time for buyers with secure jobs and sufficient finances to purchase residential real estate. Chicago house hunters who want to buy but have qualms about doing so in the current market should speak with a qualified real estate professional. An experienced agent can explain both the short- and long-term advantages to investing in a home in these economic conditions.