Although most analysts are crowing about the increase in sales and the early signals that the real estate market is turning around, there are a few items that may complicate matters and/or destabilize the market down the road (i.e. during the spring buying season):
We are not out of the woodwork yet: There are many homeowners who are just waiting for any signal of a market turnaround to put their home on the market. Inventory is still high. And interest rates are still at historical low levels (most probably will rise!!).
So, if you are a renter waiting on the sidelines for the market to bottom out - be careful! Any 1/2 point offset in interest rates will more than compensate for any additional price drops you may experience in your market....