Chicago - Have you survived The Great Recession?  Do you still have a job?  A home?  A little money for the family?

Survival itself is not an insignificant feat!

Last month, U.S. Unemployment shot up to a 26-year-high of 10.25%.  Here in the Midwest, workers have absorbed roughly half of job losses nationwide, as many communities still depend on the manufacturing sector for their livelihood.

Housing starts nationwide are more than 60% off their highs of just a few years ago.  Here in Chicago, the prices of many single family homes and condos have fallen by 25% or more over the last two years.

But, as reported by Syndicated Real Estate Columnist Don DeBat, the trend might be beginning to turn around. 

Starting earlier this year, during the second quarter, home starts have risen in virtually every state versus year-ago levels.  In all but a handful of states, home resales have also turned around.  Here in Chicago, and in many other areas of the U.S., prices have begun to rebound since last year, although they are still far below the record highs of 2004-2006.

Further, home mortgage rates are still near record lows - in some cases, less than 5% for the best-qualified homebuyers.  And these rates are expected to stay affordable for the foreseeable future.

Low interest rates, coupled with depressed home prices, and the Fed Homebuyer Tax Credit, just extended last week to also include some current homeowners, are beginning to motivate some would-be fence sitters to buy now.

Out in California, inventories of sub-$500M homes have become tight, falling to an in-balance three to four month supply late in the summer.  The renewed competition has drawn many buyers who fear they might lose out on a true home bargain if they don't act very quickly.

Some experts fear that a new influx of foreclosed and distressed properties to hit the market next year may put further downward pressure on prices, hurting homesellers, while giving potential buyers pause that prices may go even lower. 

Only time will tell the adverse effect of these new crop of distressed homes, and whether continued attractive interest rates, coupled with Fed Incentive Money, will be enough to keep the markets vibrant.

Stay tuned!

DEAN MOSS & DEAN'S TEAM CHICAGO