The Mainstreet Board of Realtors has recently released a report on the current market conditions.
First let it be said that most economists agree that the recession has ended. The real question is whether the recovery has begun. Signs of hope are seen in the real estate market with sales, pending sales, and construction starts all up.
The main problem with the recovery is jobs. In the past recoveries have been jump started by job changes. In the early Nineties, the technology changed and jobs were created. Currently there is no job engine pushing employment and the economy. Job losses have slowed from nearly 700,000 in January to 250,000 in September.
The real estate market is moving toward recovery nationally, with sales up nearly 5 percent in September. Prices, however, are still falling in every sector of the country, with the Midwest doing better with only a 7% drop over last September.
What about Cook and DuPage Counties? In Cook County currently, sales are up and matching the inventory as noted nationally. Prices are still falling in Cook County, with an explanation due to the market driven by bargain hunters and first time buyers,
In DuPage County the pattern is reversed. Sales are down and days on the market are up, with prices falling less than in Cook County, but higher than the average in the Midwest.
Looking ahead, the predictions are the the rally in the housing market will continue to improve as we move into 2010. The continued tax credits will help. Prices, however, are not expected to begin to rise until Spring or early Summer of 2010.