One reason I can think of that sales are picking up a little is that people who where dying to get into a house at the peak are now doing it. I was reading cnn.com and I saw an ad by lowermybills.com advertising $510k loan for $1600/mo. Until those non-sense loans disappear, then the market will see downturns then periodic upticks.
A lot of folks still think that housing has nowhere but up to go. My sense is that psychology on Main Street is still on the positive but it’s tempered by some realism. The market won’t find its bottom until psychology turns decidedly bearish.
