Chicago home prices up 11% annually; best in 25 years

Chicago home prices rose 11 percent in November compared with a year earlier, its best performance since December 1988.

S&P/Case-Shiller Home Price Indices showed the 10-City and 20-City Composites increased 13.8 percent and 13.7 percent year-over-year.

“November was a good month for home prices,” said David Blitzer, chairman of the S&P Dow Jones index committee. “Prices typically weaken as we move closer to the winter.”

Prices in the Chicago area actually slipped 1.22 percent from October to November, according to indices released Tuesday. The 10-City and 20-City Composites declined 0.1 percent in November after nine consecutive months of gains.

Despite the overall decline, home values have continued to rise in many Sun Belt cities. Las Vegas, Los Angeles and Phoenix have registered 20 straight months of rising prices.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The November figures are the latest available.

For all of 2013, sales totaled 5.09 million, the best performance since 2006, when sales climbed to 6.48 million, the National Association of Realtors reported last week. But the sales gains in both 2005 and 2006 represented an unsustainable housing bubble. Analysts say a more normal sales pace would be around 5.5 million units.

Mortgage rates have also risen by roughly a full percentage point since spring, although they remain low by historical standards. Mortgage buyer Freddie Mac said last week that the average rate on the 30-year loan is 4.39 percent.

Some economists say the Case-Shiller figures overstate recent price gains because they include foreclosures. Foreclosed homes usually sell at steep discounts. As the proportion of those sales declines, the index rises more sharply.

Contributing: The Associated Press