Chicago home prices drop annually, First American reports

Adjusted for inflation, Chicago home prices have significantly improved in the last 16 years
  • First American says real home prices have dropped 38.5 percent from their peak a decade ago.
  • Without inflation factored in, the national price level is 2.6 percent away from its peak in 2007.
  • With the RHPI standardized at 100 to represent home prices in 2000, Chicago holds a Real Price Index of 59.4.

irst American has released the newest edition of its Real House Price Index, which reflects inflation factors such as shifts in income and mortgage rates.

According to the report, the influence of better wages and declining interest rates shows that even though prices are close to peak in many major metros, consumers are gaining buying power.