The real estate market is finally showing signs of life after the number of homes on the market in major metro areas has begun to level off. The shift in demand is the result of an increasing number of homebuyers pulling their homes from the market amid tough competition from those homes forced on the market due to foreclosures and bankruptcies. This swing could help slow the decline in housing prices and prevent further erosion in the downward spiral that we have been seeing to date.

From the Wall Street Journal:
The supply of homes available for sale in major metropolitan areas grew modestly in February, new data show. Total listings of homes in 29 metro areas at the end of last month were up 1.2% from a month earlier, according to figures compiled by ZipRealty Inc ... After rising rapidly since 2005, the inventory of unsold homes has leveled off at a high level in recent months. Economists and other market watchers say that is partly because some people who don't have an urgent need to sell soon have pulled their homes off the market and are awaiting a recovery in the market.