Interest rates are low. Prices have come down in many areas. More buyers are deciding it's a good time to buy, even though it may be a while before the housing market stabilizes.
Buyers who have a house to sell face a more complicated situation than they did when they bought their first home. They may not be able to afford to buy a new house before selling the old one. And, it may be more difficult to find a home to buy, because many sellers are not selling now due to current market conditions.