Slower Chicago Housing Recovery Means a $107 Billion Loss
Here’s a big number, $107 billion. According to a recent feature story in Crain’s Chicago Business, that’s what the slow housing recovery has cost homeowners in the Chicago area.
As Crain’s reports, that $107 billion figure is the difference between the market value of all residential property in the six-county area of Chicago today and what it would have been if the Chicago housing market’s recovery was as strong as it has been across the rest of the United States.
According to Crain’s, citing numbers from the S&P CoreLogic Case-Shiller Indices, the recovery in home values in the Chicago housing market remains about 20 percentage points below the national average.
Crain’s did some heavy-duty research to determine that residential properties in the six-county Chicago area have a combined market value today of about $528 billion. That sounds good. But if residential properties here were keeping pace with the rest of the nation, they would instead have a combined value of $634.9 billion.
The S&P CoreLogic Case-Shiller Indices rank Chicago 15th among 20 big cities across the United States in the pace of its housing recovery. Only Miami, Tampa, Las Vegas, Phoenix and Cleveland rank lower. Denver, Dallas and Seattle topped the Case-Shiller list as having the strongest housing recoveries.
What does this mean for homeowners and sellers in the Chicago area? Only that, as always, pricing your home properly remains the key to selling your city condo or single-family home. Buyers today don’t care what you paid for your home seven or 10 years ago. They only care what that home’s market value is today. You can’t force buyers to pay more because of what you owe on your mortgage loan.
My advice is the same as it always is: Work with your REALTOR® to set the right asking price for your Chicago condo or single-family home. It’s the best way to move your property in the shortest amount of time.