Home price index numbers are up 85% in 20 of the major, metropolitan markets nationwide.  Resales of existing homes nationwide jumped 9.4% in September 09 and are up 9.2% from 1 year ago in September 08.  The average time needed to sell a home fell from 9 months to 8 months.  Six to Seven months is considered a balanced market.  

All sounds rosy but why would one want to purchase a home today with unemployment at 9+% and sales of new homes down for the 2nd consecutive month?  Simple answer: 

Purchasing a home is a long term investment. 

Where can one get in to the market (housing market) at the bottom of a long, sustained upswing?  Bullish on housing?  Yes.  Here are a few tips for buyers/sellers:

1)  Need a slightly higher credit score?  Pay down but do not pay off revolving charges in full.  Retaining a small balance ($50 or so) allows the credit card company to report activity which drives the credit scoring engine.  Fyi, on a Conventional loan of $400,000, with 20% down, the difference between a score of of 719 and 720 is 1/2 point or $2,000. 

2)  Want to take a completive edge over other Buyers when making an Offer?  Most people say the 1st stop on the home shopping list is the mortgage company.  Did you know you can get a Loan Approval without having to designate a property?  Once you have a Commitment Letter, you can strike out the Financing Contingency.  You already have your loan approved so you are not giving up anything substantial.  A Full Loan Approval/Commitment Letter is free and there is no obligation.  Discuss with your Realtor whether or not you need an appraisal contingency.  A Purchase Offer with no Financing Contingency can equate to a 1% - 3% price reduction or more closing help from the Seller.