What are people inside the real estate industry saying about the current market? Would they buy a home today? Is this a good market for first time homeowners?

For months now, Chicagoland home builders have been offering discounts and incentives to entice you to buy a new home. But how long will these incentives last? According to some industry experts, the discounts and incentives could go away with the first sign of improvement in the spring housing market.

Click here to read the Chicago Tribune article on the subject.

The Federal Reserve today slashed a key interest rate by three-quarters of a percentage point. The federal funds rate - the interest banks charge one another for overnight loans -- now stands at 3.5%. You can read more about the Fed decision at the Chicago Tribune website.

As for what this might mean for mortgage rates, click here for more analysis from Bankrate.com.

Some good news if you're trying to buy a home, fixed-rate mortgages have fallen to their lowest levels in 4 years according to finance giant Freddie Mac.

Click here to read more.

The Bush Administration today announced a plan to help homeowners who are about to lose their homes. You can read the full story about "Project Lifeline" at chicagotribune.com

There has been a lot of news lately about the current credit crisis and the steps the Federal Reserve and the Bush Administration are taking to try and ease it.

And whether you agree or not with the decisions made over the past few weeks, there's one thing for certain -- the news is having an affect on mortgage rates.

Bankrate.com says the benchmark 30-year fixed-rate stands at about 5.96%, according to their latest survey. This is up from just a few weeks ago, but is still below the average from a year ago.

So what's this mean for refinancing your home loan? Or getting a loan for your new home?

Click here for more analysis from Bankrate.com

A reminder if you are selling a home in Chicago ...

Starting April 1st, anybody who sells a home or piece of real estate in the city of Chicago will owe the city more money.

Earlier this month, the Chicago city council approved a measure that requires the seller to pay an additional $3 per $1,000 as part of the real estate transfer tax.

The additional money collected is part of the CTA bailout deal the state legislature passed recently.

To read more on this new measure, click here.

Experts say the time to buy a new home is now!

Here's why:
1. Interest rates are low
2. The selection couldn't be better
3. Prices have dropped

But does that mean that now is the right time for you? If you're anything like me, and committing to an expensive pair of shoes makes you worry, then it's understandable that you might be a bit aprehensive to jump into the housing market.

When buying a new home, don't forget about your property taxes. It's something that can easily be forgotten about in the excitement of buying a new home. But you'll regret that decision later if you do.

So remember, when it comes to looking for a new home, do the research on the amount you'll be paying for property taxes.

With all of the ups and downs of the real estate market in the last 5 or 6 years, it's easy to see how today's buyer or seller can feel overwhelmed. According to Today's financial editor, Jean Chatzky, there are some basic rules to follow if you're making a move in today's market.

Check out January's real estate wrap-up with Chicago Magazine's Dennis Rodkin. Hot topics this month included cancelled condo projects, falling interest rates and a $$5-million home sale with a lesson!

Video after the jump...

Today is tax day -- Do you have a big tax bill? Are you still procrastinating writing the check and dropping it in the mail?

Maybe this will cheer you up for your 2009 taxes! Remember the federal government is giving you a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. Read more from National Association of Home Builders.

There's some positive news to report in the Illinois real estate market. The Illinois Association of Realtors is reporting an increase in March home sales. The group also says the median price of a home in Illinois increased for the month.

Pending home sales rose 3.2% in March and 1.1% from the same time last year, according to the National Association of Realtors. This is based on signed contracts to buy re-sale homes. Does this mean we've seen the worst and we're on our way back up? Are you sick of hearing the projections of when we'll "hit the bottom??" How has the housing market affected you? Share your thoughts...

The days of showing off your wealth by building a great big McMansion for your family of three are definitely gone. While being a seller in the market today is tough, it seems that more and more people are selling their too-big-to-handle homes and downsizing to a home that makes a little more sense for their family. In fact, according to the U.S. Census Bureau, the average home shrunk by 300 square feet last year. The focus for these people is to make smart use of space instead of just adding more. Downsizing, or "rightsizing" as many are calling it, creates major savings on heating and cooling bills and many families say that it allows for more family face-time as well (I suppose because those teens no longer have their own wing to skulk off to in lieu of the family dinner).

If you're thinking of losing the wasted space and downsizing, here are some things to consider that will help you make the most of your space...

According to the Associated Press, new home sales rose 11% in June, the most dramatic increase since December 2000. So, is the housing crisis over?

According to the AP article, experts say the worst is behind us and the situation should begin to improve...slowly. Housing prices still appear to be falling, but the low prices combined with low interest rates and the new buyer tax credit have encouraged buyers to get out there in a big way. Which is the first step to getting back on track.

Also, the number of homes on the market in June dropped 4% from May - good news for sellers just getting their home on the market at the end of the summer season.

Are you a buyer or seller who has been affected by the housing crisis? Do you really think the worst is behind us? Leave your comments and experiences here!

According to the Chicago Tribune, July housing sales are up from this time last year in northern Illiniois and parts of southern Wisconsin and northwest Indiana. It's a small increase - 7,828 this July compared to 7,752 last July - but still, we'll take what we can get, right?

But, the good news did not extend to home prices. Sale prices are actually down from this time last year, which is perhaps one of the reasons that the actual number of sales are up. The first-time buyer credit, combined with historically low interest rates and low prices have created the perfect storm for buyers without a property to sell.

So, have we finally hit bottom in the real estate market? What do you think?

No one ever said the recession isn't a great time to buy normally big-ticket items. In fact, on November 4th, real estate moguls and everyday millionaires alike will line up to bid for the real estate deal of the year - a Burr Ridge home so fabulous that it has a name; Villa Taj.

The prime piece of property will go on the auction block on November 4th after failing to fetch its original $25-million asking price. Its cumulative 45,000 square feet of opulent living and entertaining space (that includes the 15,000 square feet of outdoor space) include features such as a 2,400 sqaure foot ballroom, a 20-car garage, 30-foot ceilings, Brazilian and Cherry woods, gold Jerusalem limestone and 14-inch thick walls...all of which will go to the highest bidder.

Bidding will start at $6.265 million, but if you're not in the market for such a grand estate (because, you know, the upkeep must be a nightmare...) you can still get a peek inside every weekend through the end of the month at one of the scheduled open houses. For $30, real estate voyeurs can grab a "due diligence package" at the door and take a stroll around its palatial expanse; great for those looky-loos with no intention to buy.

But then again, who can resist a 75% off sale?

Open Houses:
12:00p - 3:00p every Saturday and Sunday through the end of October
$30 "due diligence package" available at the door

Auction:
2pm, Wednesday, November 4th
Hilton Lisle/Naperville Hotel
3003 Corporate West Drive

The National Association of Realtors is reporting today that October home sales were the highest in 2 1/2 years and up 37% from the bottom in January. The first time buyer tax credit, which has been credited with helping to boost sales, was extended through April, giving experts hope that the uptick will continue through the spring.

Click here for the full article.

It seems like in real estate these days, there's always a dose of bad news with the good.

For example, the median price of homes sold in Illinois in January saw the first price increase in 2+ years. But in Chicago ... a different story.