Chicago home prices fall less than in U.S.

(Reuters) — Prices of single-family homes plunged a record 16.35 percent in July from a year earlier, according to the Standard & Poor's/Case-Shiller Home Price Indices.

The Chicago area didn’t do as badly, with prices down 10 percent in July compared with July 2007, according to the S&P/Case-Shiller numbers.

The S&P/Case-Shiller composite index of 20 metropolitan areas fell 0.9 percent in July from June, S&P said in a statement Tuesday. Since the peak of the housing boom in July 2006, the index has dropped 19.5 percent, it said.

In the Chicago area, prices were down 0.35 percent in July compared with June.

S&P said its composite index of 10 metropolitan areas declined 1.1 percent in July for a 17.5 percent year-over-year drop. From two years ago, the index is down 21.1 percent.

However, the pace of home price declines has slowed in the past three months, S&P said.

Foreclosures rise at fastest pace in three decades

Foreclosures increased at their fastest rate in nearly 30 years during the second quarter, according to a report by the Mortgage Bankers Association. Rising interest rates and falling home values prompted many to walk away from their loans. However, some analysts believe the housing bottom may be near a bottom. "People who have been waiting on the sidelines -- and there have been quite a number of them -- are starting to see prices come down to the point where they perceive good value," one economist said.

more at http://www.bloomberg.com/apps/news?pid=20601206&sid=aMA9irftpUpI&refer=realestate