Nov. 24--Home prices continued rising across the country in September, although the Chicago area saw the weakest gains among major markets.
The S/Case-Shiller home price index showed Tuesday that home prices in the Chicago area rose 1.1 percent from a year earlier. That compares with a 4.9 percent annualized gain nationally.
"Home prices and housing continue to show strength, with home prices rising at more than double the rate of inflation," David Blitzer, managing director at S Dow Jones Indices, said in a statement. "The general economy appeared to slow slightly earlier in the fall but is now showing renewed strength."
Gains in the Chicago market compared even less favorably when looking solely at major metro markets. An index of 20 big cities showed a 5.5 percent gain from a year ago.
San Francisco, Denver and Portland, Ore., reported the highest year-over-year gains among the major markets, each with double-digit percentage increases in their home prices.
Phoenix had the longest streak of year-over-year increases, reporting a 5.3 percent gain in September, its 10th consecutive increase in annual price gains.
The local market appeared even worse when looking at September from August. Chicago-area home prices dropped 0.4 percent, compared to a 0.2 percent gain nationally. It was the first drop in Chicago-area prices from the preceding month since February.
Condo prices in the Chicago area in September held up better than the overall housing market, essentially flat from August. From a year ago, condo prices in the Chicago area were up 3.6 percent.
Results overall were better than expected, Rob Martin, a Barclays analyst, said in a research note.
"We expect solid employment growth and modest wage increases to continue to support the housing market," Martin said. "We see ongoing gradual increases in house prices, a steady rise in residential construction, and further gains in new and existing home sales."
On Monday, the Illinois Association of Realtors said sales of existing single-family homes and condominiums in the nine-county Chicago area dropped 2 percent in October from a year earlier. Sales were off a steeper 7 percent from September.
The median price in October in the Chicago area was $200,000, up 8.1 percent from a year earlier.
byerak@tribpub.com
