While cruising around today, I ran across a great post by Linsey Planeta. You should go give it a read. Primarily it is about real estate agents finding a little piece of positive info and blowing it out of proportion... And to that extent, she has hit the nail on the head.
But then in the comment stream I noticed something about how the increase in sales was largely due to getting the foreclosures moving through the system... and that they didn't count. Nothing could be farther from the truth. Prices are down because foreclosures are polluting the numbers... true. Sales are up because the lower priced foreclosure are clearing... true.
But that is part of the cycle... it HAS to happen.
Right now, foreclosures and distressed properties are the old and sick of the housing inventory herd. In order to return to a healthy market, the old and sick inventory have to get eated by the predators. They need to be culled. In my area, inventory levels are still very high. They aren't as high as they were a few months ago, but they are higher than they would be in a market that is even slightly out of whack. Absorption rates and sales statistics won't look healthy until the herd is healthy.
We can try to be the guy in the video... but we aren't always going to win. We have to accept the circle of life...