Standard & Poor’s new review of Case-Shiller 2010 home value data doesn’t have a lot of good news for Chicago. In fact, it devotes most of its “Condominium Prices” section to the city’s poor performance relative to places like New York, Boston, Los Angeles, and San Francisco:
…the New York condominium market has, so far, fared better in the housing downturn compared to Boston, Chicago, Los Angeles and San Francisco, in terms of preserving price appreciation. Boston, Los Angeles and San Francisco prices are now back to their late 2003 / early 2004 levels, whereas New York is only back to early 2005 levels.
Chicago has fared the worst, with condominium values now approaching early 2002 levels. In addition, as of October 2010, Chicago is the one market that is still close to its recent low in terms of annual rates of decline, at -11.8%, which is currently the lowest rate of all the markets. The other four markets have shown improvement in this statistic since posting their relative lows in 2009.
…The Boston and New York condo markets are doing better than their respective housing markets, as detailed in the annual rates of return. The opposite is true in Chicago, Los Angeles and San Francisco, with condo prices falling on an annual basis in all three markets.
…In Chicago, condominiums closely followed the downturn in single-family home prices. Both markets peaked in late 2006 and registered some sharp annual declines, particularly in early 2009. At their lows, home prices in Chicago were down 18.7% on an annual basis and condos were down 13.5%. More recently, both home and condo prices in Chicago have seen the resurgence of a slump after an early 2010 recovery. As of October 2010, home prices in Chicago were down 6.5%, the worst annual rate of all 20 MSAs, and condo prices were down 11.8%, the worst for the five reported condo markets.