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Home Price index returns to 2003 levels

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Maureen Wilkey

Writer on real estate from any angle

AgentGenius.com reported today that the Case-Shiller Home Price Index has returned to 2003 levels. The nine consecutive months of month-to-month increases in home sales indicate that we might be in recovery.

Chicago's one year change is still -10%, but that may indicate a lot of transactions at much lower prices, says Andrea Gellar, an agent with Sudler-Sotheby's in Chicago.

We should be aware that if Fed policies change or when the tax credit ends, there may be a backlash and fewer homes may be sold for a few months, negating some of the progress we've made this year. but if things continue on this track, maybe 2010 could be a good year for residential real estate. While some say weakness in housing starts indicates there won't be many new homes, I think that will help absorb the inventory already on the market.

Looking back over the past year, I think we'll see some pent up demand starting to enter the marketplace for second-time homebuyers or move-up buyers. They haven't been able to take advantage of the tax credit, but I'm sure some will be looking for new homes now, while they can get a good deal.

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3 Comments

Andrea Geller said:

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Thanks for acknowledging me. The complete context of my quote on Agent Genius Magazine can be found at http://bit.ly/8c5EwT. I think over all distressed sales will continue to impact home values in 2010. The amount will vary neighborhood by neighborhood based on the number of short sales and foreclosures as well as inventory of a specific type of housing.

glg said:

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The new tax credit does allow non-first-time buyers to earn it

Lucid Realty said:

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The Case Shiller index has been at 2003 levels for most of the year. It's just that now it's just that it's now at May 2003 levels. More importantly, it's up from the lows of April and well below the trend line. You can see the historic trend at http://chicagohousingstats.com

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