With real estate markets slowing down in general, many are looking for signs of life. And in some of the hardest-hit areas, it does appear that sparks of life are appearing. However, it seems mostly due to interest in foreclosures. And, while there may be signs of life in some real estate markets, Calculated Risk warns that the current housing downturn is by no means over:

This doesn’t mean prices have bottomed - especially in real terms - but
the increase in transaction volume might indicate that most of the
nominal price decline has already occurred for some low end areas.