Findings from the Quarterly Survey of Home Prices, published by the Federal Housing Finance Board, show First Quarter, 2008 Chicago Average Home Prices increasing by 16.4% over the First Quarter, 2007.
Although the Chicago Real Estate Market is very large and diverse, and contains numerous pockets of varied growth or decline, the Average Home here cost $341,500 at the end of March, up from a year-ago average of $293,400.
Based on the survey data, Chicago is now the ninth most expensive real estate market in the U.S. based on the average price - ahead of the Boston MA Metro Area.
Nationally, the Average U.S. Home Price increased 0.8% within the past year - to $320,500, from $318,000 one year ago.
There is a difference of opinion as to which price range levels are experiencing the stongest price variance versus March, 2007. Zillow.com, with it's "Zestimates" automated valuation formula, projects that the biggest price declines, as a percentage, have occurred in the highest 20% price tier.
LaVaughn Henry, Director of Economic Analysis for PMI Mortgage Insurance, however, believes price declines have been strongest for less-expensive homes. He quotes S&P/Case-Shiller Housing Price Estimates from their latest Tiered Pricing Study, covering 17 of the biggest U.S. Metro Markets. The reason for the sharp drop off in lower-end homes in 12 of the 17 markets studied, he feels, might be attributable to the decline of sub-prime mortgages. In recent years, many lower-end property buyers used sub-prime loans to finance their home purchases.
See our post today at BlogChicagoHomes.com for data on average price changes for other selected markets. It links to Lew Sicheman's story in The Chicago Tribune from last Sunday, May 26th, and even more detailed Average Home Price information.
DEAN & DEAN'S TEAM CHICAGO