With all the data coming out of Washington it is hard to see what is really happening in the housing market. It seems the way they record home sales is by dollar volume, not units sold, which makes it appear home sales are still slowing since the home prices are about 18% lower than '08. In reality the number of homes being sold is up nicely from '08, it is just that they are selling for much lower prices than '08. Confusing, isn't it... In the most distressed markets, California, Arizona and Nevada, the number of home sales are showing very large increases, some over 100%. With this "boom" in sales the inventory is beginning to come down and that should lead to somewhat higher prices in the future. In my own business I am selling more homes than last year, just at lower prices. Foreclosed homes are leading the parade and resales have not gotten on board as yet. But, If the supply of foreclosed properties drops, then resales should get better. Just waiting to see that happen. Maybe by next year at least.