More Housing Numbers ? Different Data, Same Message

Being that it is the fourth Tuesday of the month, today is the day Standard and Poor releases its Shiller-Case housing numbers. They looked at month to month numbers versus the Realtor® Association who basis their findings on a year over year period. According to their statistics, this month?s Case-Shiller home price indices is reporting improved readings for seven months in a row. Essentially, this new report reflects similar data to last month?s figures.

What this means for the Chicago Real Estate Market

When Case Shiller talks about ?Chicago? they are using the Chicago Metropolitan Statistical Area or MSA which, defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. Keep in mind Chicago?s 77 neighborhoods are thrown in with Joliet and Rockdale Junction in terms of these statistics. With that being defined, they are reporting that Chicago saw an increase in home prices from July 2009 to August 2009 of 1.7%, but a 12.7% decline of year over year prices.

No matter who is pulling the data and how they chart it, the message is the same ? first time buyers and jobs. ?Broadly speaking, the rate of annual decline in home price values continues to improve? says David M. Blitzer, Chairman of the Index Committee at Standard & Poor?s. ?While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures.” But Blitzer cautions that “We do want to remind people of the upcoming expiration of the Federal First-Time Buyer?s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.”

We would like to thank gkristo for sharing today?s photo via the Creative Commons License.