Valley Home Resales Jump nearly 20% from September to October

There are still a ton of homes on the market, but we are starting to see light after the mortgage melt down in August. Today we have 47,657 single family homes on the market. Last month 3,610 resale homes were sold, compared to 3,050 for September. Normally this time of year, sales are dropping. This is due to the holiday season and the fact summer is the busiest time for residential resales. It is great to see the numbers reversing to the positive.
I believe the increase in sales can be attributed to a few things. One, after the meltdown, there was a period where mortgages were in short supply and guidelines where changing. Two, interest rates have dropped pretty significantly over the past couple of months and since their highs in May. Three, and most importantly, sellers are beginning to price their homes appropriately.
I have talked to people about prices going lower, my belief is prices are lower. Now the seller needs to be priced correctly to sell. The homes selling are those priced correctly for what they are. I see homes sitting on the market that are 20 to 30% overpriced. They just don't get it.
Sellers needing a price greater than their worth, need to take their home off the market. If all the overpriced homes were taken off the market, we would see home values start to increase. This would occur because:

Inventory would decrease
Buyers sitting on the sidelines would re-enter the market
Active buyers would become more motivated as inventory decreased
Investors would re-enter the market(normally 20-25% of homes in the valley are purchased by investors)

Those activities would increase demand while decreasing inventory, thus bringing this market back in balance. ALL I WANT FOR CHRISTMAS IS THE OVERPRICED HOMES OFF THE MARKET!