Are we beginning to see signs of a turnaround in the local real estate market? It does appear that way. Of course, no one can predict exactly what the future will hold, but many of the indicators are that we will see an improving market in 2012. Inventories are definitely down and buyers are buying. Simple economics tells us that lower inventory and steady demand should cause prices to begin to rise. I wouldn’t expect a dramatic increase however. This is certainly not a reason to delay selling in case you’re waiting for prices to rise. It appears that it’s going to be years, not months, before prices return to anything close to where they once were. Assuming we don’t have a major catastrophic event somewhere in the world that affects the entire economy, I would predict that 2012 will be the year that we finally begin to return to normalcy in the market. The key word however is: “begin”. It won’t happen overnight but at least it appears we’re headed in the right direction.