Local home prices rise in contrast to U.S.

(Crain's) — An index of local home prices rose for its fifth straight month, defying a broader decline among the largest U.S. cities as the housing recovery loses momentum nationwide.

The Standard & Poor's/Case-Shiller index of Chicago-area single-family home prices rose 0.4% from July to August but was still down 2.9% from year-ago levels, according to a report released Tuesday.

Chicago was one of just five of 20 U.S. cities tracked by Standard & Poor's where prices rose from July to August. An index of the 20 U.S. cities fell 0.2% in August but was up 1.7% from a year earlier, the report said.

Prospects for the housing market have weakened in recent months amid a weak job market, high foreclosure rates and expiration of federal homebuyer tax credits at the end of September.

“At this time, it does not seem that any of the markets are hanging on to the temporary momentum caused by the homebuyers' tax credits,” David M. Blitzer, chairman of the index committee at Standard & Poor's, said in a news release.

Local single-family home prices are roughly where they were in early 2003 and are about 25% below their September 2006 peak.

An index of local condominium prices fell 2.0% from July to August and was down 7.3% from August 2009, according to Standard & Poor's.