The naysayers are disappointed again because the US Economy refuses to head into a recession. Overall economic growth was 1% in the first Qtr. and housing sales just posted a highly unexpected 2% increase.

Median home prices are continuing to revalue lower and this recent increase rides on the heels of previous months of declines. However, sales increase 5.5 percent in the Midwest 4.6 percent in the Northeast and 2 percent in the West.

More good news for real estate is that inventory is now 10.8-months which dropped nicely from 11.4.

Couple the above numbers with the recent mortgage bail out bill and it is easy to see the US housing market avoiding the slump that so many have predicted was inevitable. Certainly we will not be returning to the boom years of the first half of the decade.