Home Sales Increase, but Prices Aren't Rising Fast Enough

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In any normal market, an increase in home sales would be good news. But combined with extremely sluggish price appreciation, the leading housing indicators may point to more trouble than good. Research firm Radar Logic believes these two factors, combined with a decrease in sales of foreclosed homes, suggest that the nation's housing woes aren't over yet. Some economists believe that home prices might fall as much as 5 percent in the next year if these trends continue.
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