Figures released today by the National Association of Realtors are a good indicator that the market continues to improve – though at very modest levels.  I’ve been saying for months that the market is, in this post recessionary period, improving though will continue to do so with minor bumps in the road along the way.
Last month’s lower than expected sales figures were just that, a bump in the road.  We saw the slip partly due to seasonality and partly due to the expiration of the tax credit.
Now, one month later, we’re seeing numbers rise.  According to the National Association of Realtors’ Pending Home Sales Index, pending home sales rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June. 
According to Lawrence Yun, NAR chief economist, “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.  “But the recovery looks to be a long process.  Home buyers over the past year got a great deal and buyers for the balance of this year have an edge over sellers.  For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.” 
Now of course this is a national perspective and we all know that real estate is local.  Locally we’re seeing some pockets of strength.  Some of the most sought after neighborhoods continue to see strong sales while those that may be challenged due to proximity to jobs and commerce, are seeing bigger lags. 
Overall what we’re seeing most is buyers want to take advantage of the low interest rates and realize that thanks to those rates, they have particularly higher purchasing power right now.  From a move-up buyer perspective, we’re seeing a lot of sellers consider selling right now.  Yes, they realize they may take a hit from the flurry days of the early part of the decade but when they compare it to what they can purchase on the move-up side and what their monthly payment will be, they truly see a benefit.  These indicators are really helping to drive our market right now.
The bottom line is, we are on a good recovery path.  And an interesting report this week underscores that.  Bankrate revealed numbers that provided a good look at consumer confidence. An overwhelming 90 percent of homeowners say they don’t regret buying their current home.  That is even in the face of stagnant – or sliding – home prices home owners have suffered.  It is comforting to see this number because regardless of where market conditions currently are, consumers continue to understand that real estate is a good, long term investment. 
Now, let’s hear what our local offices have to say:

• Boulder—New listings are up almost 12%, but sales activity is down almost 10%.  It looks as though there is an excess of properties and not as many buyers for them.  This is very noticeable in the amount of showings.  Showings are down over 20%.  This means that the market is saturated with homes for sale but the demand for these properties has dropped off in this period.  The showings reflect the sales activity in this case.
• Colorado Springs—Sales have been increasing for the past few weeks as buyers are taking advantage of low interest rates (under 5%).  Listings have also been increasing as sellers know that if they can get their homes sold they can become buyers & take advantage of low rates & move up to a larger home.  Overall, showings are down about 35% from last week.
• Conifer—There were three new listings in the Conifer office for the month of August. We also had three listings go under contract in August with five buyers put under contract.  A total of 117 showings and 5 previews for the month reflects a 60% improvement from the prior month.  Our showing activity is primarily in the mid-$200,000 to $400,000 range.
• Denver Central—Inventory continues to increase in the Denver Metro area and is just below 2008 levels but has increased 20% over 2009.  Inventory is still well below 2007 levels when it was at it’s peak.  We continue to see home appreciation in the Denver metro area but that could be attributable to the recent tax credit.  We could see appreciation tail off in the coming months with inventory increases.  Under contracts seem to have stabilized after the drop that we had after the tax credit deadline. The market is very neighborhood specific so it is important to be working with a professional that can educate & give you the proper advice to make the correct real estate decisions.  Over 50% of the home sales in the Denver metro area continue to be under $250,000.  If you’re looking to sell a home that is priced under $300,000, this is a great time.  We’re seeing improvement in the higher-end market & sales have increased.  This is definitely a great market to move up to a higher priced home.
• Denver West—Denver West has enjoyed closings in the $600,000, the $700,000 and even the $800,000 sales point. Many buyers are motivated & are taking advantage of these low interest rates. We’re experiencing many sellers buying up, yet renting out their current home since they can’t achieve the price they want. We’re also seeing a high desire to rent from former homeowners who lost their homes through short sales & foreclosures.
• Devonshire—Here we are at the end of summer & it seems that many people are out enjoying the last days before all of the fall activities get into full gear.  We can feel the angst in our buyers as they are struggling with proceeding to find that new home and take advantage of the wonderful low interest rates.  Inventory in some price points is slim. It seems that many buyers have decided to hold on until they feel that the economy is a little more stable.  A bright light seems to be in the upper price points where we have had more activity and actual closings than in the last few months.  We had the highest sale in the metro office in 2010, in the Devonshire office & we’re proud of Kelly Westergren for representing the buyer on that transaction.  Fall is historically a good time of year for us and we’re looking forward with excitement to see all the successes that fall will bring.
• Evergreen—We had a total of 19 new listings in August, with 9 listings under contract and 7 buyers put under contract.  Both are very similar to our July totals.  There was a total of 320 showings and 24 previews in the month which is a 30% improvement over July activity but still 7% below levels from Aug 2009.  Selling activity was predominately in the mid-$300,000 to $500,000 range.
• Longmont—Showings are holding very steady.  Homes being shown are still in a wide range of price points.  Move up buyers are in our market looking.  Financing is still an issue for buyers. Self employed buyers are having difficulties securing loans.  New homes in all price ranges are coming on the market & sellers are realizing that keeping their homes on the market longer will be necessary.
• North Metro—Fall is in the air, the kids are back in school and now is the perfect time to purchase a home.  We are seeing increased activity at Open Houses and in the number of floor calls coming to our office.  The average sales price has increased to $275,000 for homes sold.  We have 73 new homes listed this month as compared to 70 for last month and we’ve helped buyers and sellers close on 74 properties.
• Parker—Our listings and showings are down from the past week as families return from vacations.  Our market is still strong with buyers as the low interest rates (under 5%) make it likely that this trend will continue for a while.
• Southwest Metro—Showings have been steady but they’re still significantly down from June of this year as well as this time last year.  The buyer pool is waiting and we do not understand what they are waiting for as the interest rates are so great. We’re seeing good activity in homes over $300,000 & less activity in those below that amount. The first time buyers are not moving but are waiting.  Sellers are still ready to list their properties but are not realistic as to the value.  Everyone seems to be in a holding pattern waiting to see what is going to happen.  We’re sending out newsletters showing that this is a great time to finance a home.  Open houses have been good & a couple of agents did have several good buyer leads in the past two weeks.

If you focus only on the averages, life in the typical American town frankly doesn’t seem so hot right now. The median home continues to lose value. Cash-strapped state and local governments are cutting services. And unemployment, at 9.3%, is still high.

But those bummer statistics obscure one important-and encouraging-fact: There are plenty of outliers. MONEY found them through its annual search for the best places in America, which this year focused on the nation’s small cities (those with populations of 50,000 to 300,000). Reporters crunched reams of data to find the optimal combo of job opportunities, fiscal strength, top-notch schools, low crime, good health care, lots to do, and many other factors that help make a town great for raising a family.

And because numbers don’t tell you anything about charm and community spirit, reporters visited 30 of the highest-ranked towns in person. Those that made the cut landed on MONEY’s top 10 list. As you’ll see, these places are anything but average.

1. Eden Prairie, MN
Population: 64,000
Unemployment: 5.1%
Pluses: Plenty of jobs, very low crime, lots for kids to do
Minus: Long, cold winters

Why is Eden Prairie No. 1 this year? Not only is it family-friendly, it has a dynamite economy too.

At 5.1%, its unemployment rate is nearly one percentage point below the county rate and more than four points below the national average. It helps when you’ve got 50,000 jobs right in town.

Major employers include Fortune 500 trucking company C.H. Robinson, hearing-aid maker Starkey Labs, and the Minnesota Vikings, whose practice facility and front office are here. As for fiscal strength, Moody’s gives the town a perfect AAA bond rating.

While it doesn’t have much of a downtown, there’s plenty of outer beauty: from gently rolling hills to 17 lakes that residents flock to year-round for swimming and ice skating. Town parks are laced with 125 miles of running, hiking, and biking trails.

No wonder residents rank among the healthiest people in the nation. Add in top-notch schools and safe streets and you’ve got a place that’s tough to beat.

2. Columbia/Ellicott City, MD
Population: 155,000
Unemployment: 5.2%
Pluses: Booming economy, terrific schools, diversity
Minus: Bad traffic

Ellicott City boasts grand homes, a lovely 18th-century downtown, and lots of restaurants. Columbia offers a wide range of housing, tons of parkland, and a major music venue. But those varied amenities are far from the only reasons this duo has risen to No. 2 from No. 8 in 2008. It’s also an economic powerhouse with a jobless rate just as enviable as Eden Prairie’s.

The nearby National Security Agency and the Fort Meade Army base together account for more than 8,000 jobs, and the government plans to move thousands more positions there by next year. Baltimore and D.C. are within commuting distance (30 and 60 minutes, respectively).

As for housing, the foreclosure rate is one of the lowest in Maryland, yet homes are affordable — by Northeast standards, anyway. Factor in excellent schools and a diverse population (17% of residents are black, 14% Asian), and you can see why this place has become a magnet for families.

Even empty nesters like Alma, 46, and Elmer Gill, 54, who have lived in Columbia for 14 years, appreciate the town’s appeal. Says Alma: "There’s no other place we’d want to live."

3. Newton, MA
Population: 82,000
Unemployment: 6.0%
Pluses: Great schools, low crime, strong economy
Minuses: Pricey homes, bad traffic

Less than 45 minutes from downtown Boston via train, subway, or express bus, Newton is divided into 13 "villages" loaded with classic New England charm. Most have pedestrian-friendly shopping districts, parks, and playgrounds.

The town weathered the economic downturn fairly well, thanks to such stable local employers as Boston College and Newton-Wellesley Hospital. And Greater Boston, of course, offers a wealth of health care, education, and government jobs.

Residents rave about the top-ranked schools, and parents are excited for the new high school opening this fall. "It’s absolutely beautiful," says Claudia Wu, 51, an attorney with three school-age kids who has lived in Newton for 20 years. It should be: The school cost $197 million, an amount that sparked plenty of local outrage.

After all, living in this community is expensive enough: a three-bedroom house runs nearly $600,000. If it weren’t for those hefty price tags, this town would be pretty close to perfect.

4. Bellevue, WA
Population: 124,000
Unemployment: 5.8%
Pluses: Natural beauty, excellent schools, diversity
Minuses: Pricey real estate, rain

If forested cityscapes are your thing, this is your kind of place. Bellevue’s compact downtown bristles with new skyscrapers that seem to hover above Lake Washington — and when the clouds part, mountain views loom.

Real estate isn’t a bargain, but the town’s jobless rate is more than two points below that of the Seattle metro area, thanks to a recent influx of jobs from such employers as Microsoft (which has moved 6,500 positions here), T-Mobile, Verizon, and Expedia. In fact, Bellevue has more jobs than it does residents.

And the population is diverse: Nearly a quarter of residents are Asian, and nearly a third are foreign born.

The town’s high schools consistently land at the top of state rankings; despite school funding cuts throughout Washington, the town has been able to enhance special ed and gifted programs. There’s an embarrassment of arts and entertainment riches, including a philharmonic orchestra, fine arts museum, children’s museum, botanical garden, youth theater, annual jazz festival, and 74 (!) parks.

5. McKinney, TX
Population: 125,000
Unemployment: 7.8%
Pluses: Affordable homes, charming downtown
Minus: Traffic headaches

Lots of towns near Dallas have low crime, affordable homes, and good jobs; McKinney is no exception. What makes it stand out is its gem of a downtown. Lovingly restored 19th-century buildings house restaurants, boutiques, and galleries; the 1875 courthouse contains a new performing-arts center.
McKinney’s employment opportunities are robust, sparing many residents a rush-hour drive of up to an hour to Dallas. Defense contractor Raytheon has a 3,700-person division here, and a mix of businesses in financial services, medical technology, and eco-friendly manufacturing are moving in.

Though McKinney has grown like mad over the past decade, you’d never suspect it when driving through its tree-filled communities surrounded by ponds, parks, and hiking trails. Residents say the town has handled the influx well, building plenty of new schools and hospitals.

And the relatively low real-estate prices thrill transplants from more expensive locales: A five-bedroom house, with a pool, set on a golf course might go for $440,000, and you can find homes for a third as much.

6. Fort Collins, CO
Population: 141,000
Unemployment: 7.4%
Pluses: Outdoor activities, steady economy
Minus: School budget cuts

Bikers and beers. In most parts of the country, those two elements may be reasons to move elsewhere. But in the foothills of Colorado’s Front Range, bikers mean cyclists: Fort Collins has 29 miles of well-used trails.

As for beers, this town has become a high-end microbrew mecca. New Belgium Brewery (maker of Fat Tire) is based in this entrepreneurial town, and competitors are moving in.

People here aren’t slackers either. Bolstered by Colorado State University, which employs 7,000, "the Fort" is a center of economic activity. Hewlett-Packard, the city’s second-largest employer, announced worldwide layoffs in June, but they won’t affect Fort Collins. In fact, the company is adding jobs here.

This idyllic town — No. 1 in 2006 — would rank even higher but for one thing. (No, it’s not last summer’s Balloon Boy hoax, perpetrated by the local Heene family.) Colorado schools are hurting. After the state sliced public schools budget this year, Fort Collins’s Poudre School District laid off 139 full-time employees.

7. Overland Park, KS
Population: 175,000
Unemployment: 5.3%
Pluses: Good schools, low cost of living
Minuses: Some job losses, not much excitement

Ask residents why they chose this Kansas City suburb and you hear one thing over and over: the schools.

Other draws include a 300-acre arboretum and botanical garden, a biweekly farmers’ market, and a brand-new 12-field soccer complex, which hosts local and national tournaments.

Overland Park’s biggest challenge in recent years has been from its largest employer, Sprint. The company laid off more than 3,000 people here from 2007 to 2009.

But the town has had enough success attracting new employers that its jobless rate is still well below the national average. What’s more, a division of J.P. Morgan plans to move 800 positions here early next year.

8. Fishers, IN
Population: 69,000
Unemployment: 6.2%
Pluses: Very low crime, inexpensive homes
Minus: Short on charm

This Indiana town offers a winning combination of low-cost houses (you can snag a three-bedroom for less than $150,000), easy access to the big city, and good schools.

Plus, Fishers is booming. Development abounds and fully 1,600 jobs were created here last year; major employers include Sallie Mae and medical device firm Roche Diagnostics.

True, Fishers will never put anyone in mind of a quaint New England village. But thanks to its myriad advantages, including lots of community spirit, residents aren’t complaining.

Sums up Debra O’Donnell, 46, a mother of two: "It’s very easy to live here."

9. Ames, IA
Population: 60,000
Unemployment: 4.3%
Pluses: Jobs galore, welcoming vibe
Minus: Cold winters

Unemployment at 4.3%? That’s not a misprint: Ames is the home of Iowa State University, which employs 9,000, and there are lots of biotech and agriculture jobs nearby. Like many states, Iowa has trimmed university funding, but the school has not had to make drastic cuts.

If the people who live here get bored, they have only themselves to blame. Besides Iowa State’s cultural and athletic offerings, Ames boasts 36 parks, a bustling shopping district, and a new aquatic center.

Sports are big in this town: The high school boys basketball team, girls tennis team, and girls golf team are state champions. But the friendliness of the community is what newcomers tend to remark upon most.

Says Craig McFarland, 55, a financial adviser who moved here with his family in 2006: "Our first day, a neighbor came over with cookies."

10. Rogers, AR
Population: 57,000
Unemployment: 5.8%
Pluses: Low cost of living, diversity
Minus: Strip malls

If you’re inclined to dismiss a small city in Arkansas as a backwater, you’re making a big mistake. Rogers is right next door to Bentonville, where Wal-Mart is headquartered.

Given the power of the retail behemoth, many Fortune 500 firms that sell it their wares have moved executives to the area. Lots of them have settled in Rogers, giving it a cosmopolitan feel. (Wal-Mart’s CEO, Mike Duke, also calls Rogers home.)

They’re drawn by top-notch schools and outdoor activities, including swimming and wakeboarding on the town’s two lakes and golfing on its five courses.

(Not all is picture perfect: Rogers does contain some rundown areas.) Though Wal-Mart has had layoffs in recent years, the jobless rate here remains low.

See the full list of the 100 Best Places to Live in America

Check out the latest issue of Alice P’s Market Update! This month’s issue features information about the recently extended Homebuyer Tax Credit, Healthy Home Tips, and 3rd Quarter Sales Statistics. Click here to view this month’s e-zine.