Today, Standard & Poor’s (S&P) released December 2015 values for its Case-Shiller Home Price Index, which tracks the prices of existing single-family homes in 20 U.S. metro areas. The index in each metropolitan area extends from a base value of 100 in January 2000. For example, Chicago’s December 2015 index value was 129.84 before seasonal adjustment; this translates to a 29.84 percent appreciation since January 2000 for a typical home in the Chicago market.

  • All 20 cities tracked and both composite indices showed positive year-over-year returns. In Chicago, the index increased 2.4 percent from 126.77 in December 2014 to 129.84 in December 2015. This was an improvement over last month’s YOY growth rate of 2.0 percent.
  • Chicago was among nine cities that experienced negative monthly rates of change. Chicago’s December 2015 home price level decreased by -0.41 percent from the previous month, also falling behind the 10-City and 20-City Composites’ respective -0.06 and 0.02 percent growth rates.
  • In a press release, Standard & Poor’s Index Committee Chairman David M. Blitzer noted housing as part of an strong overall consumer portion of the economy. He observed that, “While home prices continue to rise, the pace is slowing a bit. Even with some moderation, home prices in all but one city are rising faster than the 2.2% year-over-year increase in the CPI core rate of inflation.”
The following charts illustrate home price comparison and trends.
Case1 022516
Case2 022516

Source: S&P/Case-Shiller Home Price Indices

Note: The full press release and additional data can be found on the S&P website. Values reflect non-seasonally adjusted data, which are typically more appropriate for annual comparisons than monthly ones; however, due to heightened volatility in recent housing values that can skew the seasonal adjustments, S&P recommends using the non-seasonally adjusted numbers, even for month-to-month comparisons.

Chaired by Mayor Rahm Emanuel, World Business Chicago is the public-private partnership leading the Plan for Economic Growth and Jobs in order to drive business development, cultivate talent, and put Chicago at the forefront of the global economy.

WBC’s “Economic Briefs” track indicators from month to month to gauge the strength of several aspects of Chicago’s economy, including unemployment, population, venture capital, job openings and new hires, home sales, tourism, etc. This data provides a clear analytic framework for specific Plan strategies and initiatives. For a summary of these and other economic indicators, refer to WBC’s monthly Chicago By The Numbers 

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