It's called the law of supply and demand. Consumer home buying (demand) is normally greatest during the spring season, and lowest in the winter season. Also, many home buyers delayed purchasing because they had heard about the expected flood of new foreclosed homes (shadow inventory) expected to hit the market this spring; and the tax credit was extended and expanded until April 30, 2010. So, right now demand is expected to be pretty strong.
But, it now appears that the expected flood of new foreclosed homes might not happen, thus pretty much keeping the available inventory (supply) flat. Historically, sellers would place their homes on the market in spring, thus increasing the supply of available homes. However, many potential sellers are not placing their homes on the market because of depressed values; choosing instead to wait until values return. This only compounds the flat supply situation.
When supply remains flat or goes down, and demand increases, prices tend to increase. And still another more simpler possibility, is that someone bought or controls the home, and is now trying to "flip" it in hopes of making a quick little profit.
Feel free to contact me for additional help.
Reggie (248)721-4830 or Admin@AmazingRealEstate.net