Chicago homeowners who have been waiting for real estate values to bounce back to the levels they were at before the housing crash probably will continue to be frustrated in 2017, although a couple of hot neighborhoods are poised to see appreciation.
On average, home prices in the Chicago area will climb just 1.95 percent this year, according to economists with Realtor.com, the official website of the National Association of Realtors. That contrasts with a projected national average of 3.9 percent, and leaves Chicago far behind cities like Seattle and Denver, where home prices have recovered completely and hit new highs last year.
Nationally, home prices returned to 2006 levels in 2016, meaning the country’s housing market is back to its pre-crash health. But home values in the Chicago area remain about 19 percent below where they were before the crash, according to the S&P CoreLogic Case-Shiller home price index.
Chicago’s housing market will be the weakest of the country’s 100 largest metro areas in 2017, said economist Jonathan Smoke of Realtor.com.
Further, the Chicago area is one of the nation’s worst for homeowners in serious financial pain. About 12.2 percent of homeowners are underwater on their mortgages, meaning they owe more on the mortgage than the house is worth, according to CoreLogic. Among the nation’s largest cities, Chicago is less troubled than only Miami and Las Vegas, which were hotbeds of investor speculation in the housing mania that preceded the crash.
Read more of this article by Gail MarksJarvis at: http://trib.in/2izl7Ic