Since 2000, Standard & Poors has compiled the Case-Shiller Home Price Index, comparing average relative price for the Top 20 Real Estate Markets, versus a January, 2000 Benchmark of 100.00.  Based on this index, the Average Home Price in the Chicago Metro Area dropped 1.98% between January and February, 2008, to an index of 159.33 in February, from the January number of 156.42.

Compared to February, 2007, the index in Chicago dipped 8.5% - from 167.49, to 159.33.

Nationally, the 20-city index was down 12.7% year over year, ending in February, 2008.  The monthly index drop between January and February was 2.6%.   Seventeen of the top 20 cities showed index declines between February, 2007 and February, 2008.  Leading the pack in declining prices were previous high-growth markets Miami FL and Las Vegas NV. 

Only Charlotte NC showed price index improvement - up 1.5% within the last year, but the Charlotte numbers have fallen considerably in recent months.

Noted David Blitzer, Chairman of the Index Committee at S&P, "Month-to-month, it gets consistently worse."   February also marked the sixth straight month that all 20 cities in the Case-Shiller Index experienced price declines. "There is no sign of a bottom," continued Blitzer.

Click here for a copy of the February Index Report, just released on April 29th, for the Chicago Market, and all markets nationally.

Across the U.S., one in 194 houses was in some stage of the foreclosure process during the First Quarter, 2008.  The First Quarter was the seventh straight quarter of increasing foreclosure filings.  In hard-hit Las Vegas, one in 54 homeowners are facing foreclosure.  (Figures compiled by RealtyTrac.com.)  One Realtor here estimates half of all homes sold in her Las Vegas market were either in delinquent status, or in foreclosure.

One might think that declining prices, coupled with excessive home inventory, would create a field day for property investors.  Many investors, however, fail to qualify for financing, as lenders have made the loan underwriting process considerably more difficult.  Higher down payments are also required, especially for non-live-in investors.

Here in Chicago, and elsewhere, the Spring Real Estate Market often predicts the strength or weakness of home sales through the balance of the year.  At this point, sales and activity here has been somewhat lackluster.  Assuming this is a sign of future activity this year, it might be some time before the Chicago Real Estate Market once again pick up steam.

See our post today @ BlogChicagoHomes.com for more information, including links to J.W. Elphinstone's story in yesterday's Chicago Tribune, as well as yesterday's article in Forbes Online.

DEAN & DEAN'S TEAM CHICAGO