The reason according to Blanche Evans of Realty Times is simple.
Make perfect sense to me. Mortgage rates are low, low, low and there's plenty of inventory to choose from. I also think seller's are beginning to get a little more realistic with their asking prices. These are all ingredients for a market upswing.
"Consider that home prices [across the country] in February 2007 were $213,500 and interest rates for the month averaged nearly 6.5 percent. In 2008, prices are $195,000 and interest rates averaged 5.9 percent.
So it shouldn't be surprising that housing inventories have dieted down to a 9.6-month supply from over 10-months on hand in January."