It was always my understanding that housing downturns have two bottoms. The first one is based on activity (which we may be getting past now) and the second one is based on prices.

So transactions going up while prices continuing to drop makes sense.

Hi, Nick T. -- Mark Zandi agrees with you. More on his opinions later!

I find it depressing that sales didn't go up much more. The government is giving people money to buy more homes..last year's number at this time was terrible..interest rates are lower and we go up "allegedly" 2 percent? While I guess real estate agents and desperate home sellers can jump on the news - sales are increasing. I just don't see why home prices don't collapse completely here soon. What is holding the "price" up?

Actually that is a topic never discussed..with all the mortgage modifications, bailouts, free money give aways- the "prices" paid in 2003-2008 really were never paid.....what is stopping rowhouses in Canton/Federal Hill going back to mid 90's prices?(only a few people ever actually paid the outrageous amounts and it is clear those people couldn't really afford them)

In the BALTAREA, more than twice as many homes were sold, at higher average and median prices, in June 2005 than were sold in June 2009.

Yes indeed, John -- 5,048 homes changed hands in June '05 vs. 2,375 last month. It would take a really big increase to get back to '05 sale numbers.

1997 prices could certainly help bring sales levels closer to 2005 levels ( and foreclosures to record levels)!!

Anyone with $550-$600K, on the other hand, would have a ton of attractive detached homes to choose from -- and these home have definitely been discounted off their 2008 prices.

Also, in searching for city homes, needless to say we also feel priced out of homes because of the exorbitant property tax rate -- which effectively negates all savings one might get from low interest rates.

Darwin Rules: Gee, we never heard you say that before!

Even an increment of 2% is a good news, as it is showing a positive move.

I agree with both NIck T's comments.

I also find the 8k tax benefit to be a major pain. I find myself under pressure to buy before the deadline and human nature tells me that sellers are adjusting accordingly in their listings and negotiations.

Also, I have observed in many areas that listing prices have gone up recently while actual home sale values continue to go down.

Buyers need to be patient as sellers finally come to the realization that home prices need to drop further.

BTW, Jamie, congrats on the front page story in the SUN today.

What percentage of the sales are from foreclosures, new homes, and existing home resales? I have to imagine that distress sales are skewing those numbers. What will happen once the foreclosures are no longer out there? What will home sales look like then? Now they are predicting unemployment to hit 13% and the economy will not recover until 2011.