The pending sales index issued by NAR is up for the fourth month in a row. The Schiller-Case Index shows that prices are still down, but declines are abating.  Which of these is a better read on the market? Well, that depends on whether you like to drive looking through the front window or at the rear view mirror. The pending sales index, of course, is a window on what’s ahead, while the Schiller-Case index shows the past. More importantly, in any real estate cycle sales react first and prices lag. So I think we can declare this housing downturn offcially over. But what about all the foreclosed properties banks are hoarding, just waiting for the right moment to dump them on the market and depress prices even further? Another urban myth. I just don’t think the inventory is there, and if it is, why would any company worth its salt (and I’ll be generous and includes banks here, although there’s scant evidence to justify doing so) deliberately depress the value of its own assets? These properties will hit the market, but gradually and only after the market is strong enough to absorb them. In the meantime, make sure your consumers know that the market has turned, rates are going up and their window of opportunity is closing!