Hi Desert Real Estate Forum

NAR reported today that nationwide existing homes sales incresed by 10.1 in October which is an increase of 23.5 percent over October 2008.  3 Factors seem to be driving this increase:

1.  Tax Credit Extensions

Extensions of the tax credit for first time home buyers along with the new credit offered for non first time buyers has continued the market surge

2.  Declining Inventory

Even with the increase in foreclosures, availalble inventory has declined and fueled increased competition between buyers.  Many buyers, viewing this as the bottom of the market, are getting in before prices start to increase.

3.  Decreasing prices

Although market sales are looking up, prices continue to decrease as banks and some buyers continue to try to "get out" of their properties.  This is a trend that will not last based on items 1 and 2.