I was reading about home sales in the Tampa Bay area and how they were up 25% in February compared to a year earlier - WOW! I am feeling it to...offers are flying and contracts are being written. What has changed?

One word: perception.

Our perception of the economy has changed. When was the last bad jobs report you heard? Did you notice that 4 banks were taken over last week. That's buried in the back page. Gas is staying low, and people are even buying SUV's again?!?

What has changed to cause a 25% increase in sales? Price has decreased quite a bit, but so have buyers 401k's. Cash is still quite plentiful, however tight credit remains.

Could buyers be sensing a bottom? Perhaps. I still believe we are in for a long haul before our economy gets better (or at least evens out for a soft landing). Buyers have not seen these prices since pre-boom 2002 & 2003...it's like the last 6 -7 years never happened!

But they did. Short sales abound, the foreclosure onslaught continues, and there is sure more pain to come. We have a 2+ year inventory of VACANT NEW HOMES...where will thoe prices be 2 years from now? How will that affect our home prices? Only time will tell. But I do know one thing...if you price it correctly, they will come (and buy it)! Good luck