The magazine considers these markets as on the road to recovery.

1. Miami-Ft. Lauderdale, Fla.

2. Lincoln, Neb.

3. Colorado Springs, Colo.

4. Salem, Ore.

5. San Luis Obispo, Calif.

6. Bremerton, Wash.

7. Denver, Colo.

8. Redding, Calif.

9. Santa Barbara, Calif.

10. San Jose, Calif.

Source: Forbes, Matt Woolsey (08/13/2009)

Notice that the Washington, DC, area, including Northern Virginia is not on this list.  The number of short sales, foreclosures and investment activity is continuing to put downward pressure on prices, even though individual properties are being "bid up."

At this point in time, the bidding process is really about keeping the option to negotiate a sales price, because, almost without fail, appraisals to not match up to contract prices.

At the lower end of the market, many banks are putting conditions on sales that virtually preclude private buyers in favor of investors.  Things such as short settlement time frames, or refusal to agree to any time of home inspection are all intended to require a "cash" sale, with requiring a cash sale.

Lots of first time buyers are unable to win the bidding on any home.