As reported in the REAL Trends Update #1275 on February 1^st, the number of properties going under contract nationally continue to increase.  Through December, the numbers have gone up in five of the last six months (although this past December was 4% below a year ago).  The fact that the contract activity is fairly steady indicates that the sales volume is approaching a “sustainable, healthy volume” in the range of 5.5 million sales. The media reporting of the reality of “modest gains” in the job market and other indications of an improving economy are giving consumers some confidence to seriously pursue the purchase of a home.  The housing affordability conditions continue to be excellent for those active buyers, as there is still a great selection in inventory, sellers are motivated, and interest rates are still very appealing (and expected to rise only modestly over the first quarter and into the second). The article further reports that buyers shouldn’t expect to see continuing falling prices in all areas, as the median existing home price actually rose 0.3% in 2010.  Predictions are for a flat or slight rise in this median selling price over 2011.  The expectation is that home sales will rise about 8% to 5.3 million which brings it closer to what is considered a healthy, sustainable level of about 5.5 million.