Chicago home prices rising slightly faster than nation
By CHRISTOPHER S. RUGABER | AP Economics Writer June 3, 2014 8:28AM
Home prices in the Chicago area rose 11.4 percent in April compared with a year earlier, slightly more than home prices nationwide. | AP file photo
Home prices in the Chicago area rose 11.4 percent in April compared with a year earlier, slightly more than home prices nationwide.
U.S. home prices rose 10.5 percent in April, but the increase was the smallest annual gain in 14 months. That is a healthy gain, but it is down from March’s 11.1 percent increase and February’s 12.2 percent rise, data provider CoreLogic said Tuesday. Price gains have slowed this year as sales have faltered.
On a month-to-month basis, April prices rose 2.1 percent. But CoreLogic’s monthly figures aren’t adjusted for seasonal patterns, such as warmer spring weather.
Higher mortgage rates, tight credit and a limited supply of available homes have slowed the housing recovery. Sales of existing homes ticked up in April after falling to a 20-month low in March. They were still 6.8 percent lower than a year ago.
Prices rose in the 12 months ending in April in every state, CoreLogic said. Prices rose 9.1 percent in Illinois and 3 percent in Indiana.
The states with the biggest price gains were California, 15.6 percent; Nevada, 14.8 percent; Hawaii, 14.1 percent; Oregon, 11.8 percent; and Michigan, 11.3 percent.
Ninety-five of the 100 largest metro areas reported higher prices in April compared with a year earlier. The five that did not record an increase were Hartford, Connecticut; Milwaukee, Wisconsin; Little Rock, Arkansas; Worcester, Massachusetts; and New Haven, Connecticut.
Nationwide, home prices are still 14.3 percent below the peak they reached in April 2006, when the housing bubble began to deflate. But in 23 states, prices are at or within 10 percent of their previous peaks, according to CoreLogic’s figures.
Housing began to recover in 2012, but sales of existing homes stalled after mortgage rates jumped last spring. Most economists forecast that sales will barely rise this year from 2013’s pace of 5.1 million. Sluggish sales, in turn, will slow annual price gains this year to roughly 5 percent or 6 percent, economists predict.