The Associated Press reported that the Federal Housing Finance Agency said prices, on a seasonally adjusted basis rose 1.7 percent from December to January.  Changes in the geographic mix of sales explained the unexpected monthly increase. Home sales included in January’s data were weighted toward areas that haven’t borne as much of the brunt of the housing recession, the agency said.  Since real estate is a very local market as opposed to a broad national index, it can be misleading to see this.  However I believe that the bottom of the market is forming (or already formed) in many local regions around the country.  We are nearing the Perfect Storm for home buyers.  There is a large selection of homes to pick from, interest rates have dropped to historical lows for 30 year FIXED loans, and prices have adjusted down significantly from their peaks.  Then you add in the $8,000 first time home buyer credit from the government and this may be the best time to buy in a generation.