The Chicago Tribune reports from Illinois. "The number of homes sold in Illinois dropped dramatically in November while prices slid outside of the nine-county Chicago market, according to the monthly report by the Illinois Association of Realtors. Statewide, the median sale price was $193,000 for the month, down 3 percent from $199,000 a year ago, with a 20 percent drop in sales from last November."

"Geoffrey J.D. Hewings of the University of Illinois, said slow job growth rate in Illinois is dragging on the economy and housing market. 'It is hoped that the recent declines in interest rates may help stimulate the housing market. In the interim, consumer sentiment is moving to a cautious mode,' he said."

"With prices predicted to keep falling through the coming year or even longer, one might question the wisdom -- even the sanity -- of buying a home now when even better bargains probably await."

"But people are buying. Armed with attractive mortgage interest rates and a bountiful supply of houses to choose from, some bargain-hunters say it is the time to act."

"'If you think there is blood in the streets, you want to be buying,' said Vince Allegra, who in late November swooped in on a west suburban house that had languished on the market since spring."

"Dickering with the relocation company that owned the house, he snagged it for $860,000 -- less than the original list price of $1.1 million and even below the $950,000 it sold for in 2005, he said."

"'I still think the market will get worse before it will get better,' said Allegra, a money manager for high-net-worth clients. Still, he said he believed the market was near enough to a bottom to make a deal worthwhile."

The Gazette Extra from Wisconsin. "Darrell Pelikan knew his home value would go up in the town of Janesville’s reassessment this year. After all, the town hadn’t assessed the home in nine years. But he wasn’t expecting a 77 percent increase."

"Pelikan was shocked to see the assessor, Associated Appraisal Consultants of Appleton, valued his 1,300-square-foot home at $193,000, up $84,000 from its assessed value in 1998 and up $82,000 from the price he paid for it in 2001."

"'It was outrageous, even at the prices real estate was going two or three years ago,' Pelikan said."

"Pelikan wasn’t the only one angry. Town clerk Andrea Peabody estimated a couple hundred residents showed up for the town’s open book session in November, and about 60 appeared before the town’s board of review a few weeks later."

"Bruce Gurney was one of them. He went to the open book session to complain about his assessment rising 90 percent since it was built in 2000. His 1,092-square-foot home was assessed at $223,000. 'That place was packed,' he said of his trip to town hall. 'I had to wait two hours.'"

"After the open book session, Associated Appraisal lowered the assessment to $188,000, Gurney said. The board of review declined to lower the assessment further."

"Pelikan hired a private appraiser, Robert Kagel, who valued his home at $164,000. 'There’s no way that I’m going to be able to sell this property at $193,000 or—anytime in the next few years—$177,000,' Pelikan said."

"Pelikan believes the assessor made his decision based on the inflated sale prices of homes in the last few years and didn’t take into account the current nationwide housing crisis. 'Now with this subprime (mortgage collapse) and all this, things have to come down,' he said."

"But assessors can look only at sale prices from before Jan. 1 of the year of the assessment, said Joe Griesbach, president of Associated Appraisal. That means the company couldn’t look at any home sales after Jan. 1, 2007."

The St Cloud Times from Minnesota. "It may not be as bad as it is on the coasts, but St. Cloud's economy and housing market have taken a hit this year."

"About 70 mortgage brokers are no longer operating. Foreclosures in area counties have dramatically increased in the last year. Builders' and real estate agents' business has slowed. Local financial counselors are twice as busy this year compared with last year."

"At least one bankruptcy attorney has seen a 50 percent spike in business in the last year. And getting a loan is much harder than it used to be."

"Rich MacDonald, an economics professor at St. Cloud State University, said markets need time to untie the knots. Another local economist, King Banaian, chairman of the economics department at St. Cloud State University, agreed."

"'The credit crisis has continued and will continue to rise over the next several months,' he said."

"Despite the gloomy prediction, local business leaders are keeping a positive outlook. Bankers and real estate agents say this is the best time to buy a home: prices and interest rates are low, and buyers have plenty of homes to choose from."

"'It's like Christmastime out there for buyers,' said John Pearson, an agent in St. Cloud."

"Foreclosures are up 36 percent in Stearns and Benton counties — from 39 in November 2006 to 53 in November 2007. From November 2005 to November 2006, foreclosures more than doubled, from 14 to 39."

"Housing starts in the six-city area are down 39 percent from November 2006 to November 2007. That slump followed a major hit from November 2005 to November 2006, when housing starts dropped 42 percent, from 893 to 522."

"But that could reflect a correction in the market. Bonnie Moeller said it's like the housing market was going 100 miles an hour, but now it's going the speed limit. Moeller is the executive director of the Central Minnesota Builders Association."

"Because of the downturn in the housing market, and because of the new requirements, many brokers or mortgage companies stopped operating. In St. Cloud, 70 mortgage brokers who had licenses before August no longer do. Now just 33 have active licenses, according to the Minnesota Department of Commerce. Before August, Minnesota had 4,000 licensed mortgage brokers, and now there are just over 1,200."

"At Munson Mortgage, subprime mortgages — once 20 percent of its business — are no longer part of its portfolio. Stricter federal lending standards have affected his ability to make such loans."

"'I can't make up my own rules,' John Munson said."

"At some local banks — such as Bremer, Liberty Savings Bank and ING Direct — leaders said they haven't been hit hard by the crisis because they did not make subprime loans. 'We make loans to people that can pay them back,' said Brian Myres, head of Midwest operations for ING."