Home prices are rising again in some Chicago-area neighborhoods, in a
sign that the local housing market is nearing the end of a devastating
Single-family home prices rose in 56 of 253 Chicago-area ZIP codes last
year, according to Fiserv Inc., which calculates the widely followed
Case-Shiller Home Price Index. It's the first gain since 2006 in any of
the local ZIP codes Fiserv tracks.
Declines slowed sharply across the region, suggesting the worst erosion
of home values is over. Prices in the area fell 2.8% last year, compared
with 16.3% in 2008.
Home prices are something of a lynchpin for a recovering market. As long as home prices kept falling, mostly because of foreclosures and short sales that depressed values, people were hesitant about getting into the market. Sales have been picking up, but rising home values are key to restoring a normal market.