Mortgages are expected to make a concerted effort to avoid the foreclosure or assignment of HUD-insured mortgages, and to utilize acceptable methods of forbearance relief, wherever feasible. To qualify for a special forbearance, homeowners must first show they have made a strong effort. In no case shall a special forbearance be appropriate if the default was not due to circumstances beyond the mortgagor's control. Download the HUD Forbearance Relief.

For only the second time since the end of last year's tax credit, there were more Pending Sales for a given week than in the prior year. A total of 958 buyers entered into contract for the week ending May 14, an increase of 15.4 percent and the highest number of pendings since the week ending May 8, 2010.

But let's not get too excited just yet, because this apparent shift in Twin Cities home purchase activity was primarily driven by the post-tax-credit slowdown seen at this time last year. To illustrate this point, 2011 sales activity has increased 4.1 percent since the final week of April, while 2010 saw a 43.5 percent decrease during the same period.

On the supply side, New Listings have come back in line with historical norms for this time of year. Sellers brought 1,704 new homes online, or 7.7 percent more than the same time in 2010. Again, 2011 activity has been fairly stable over the past month while 2010 activity declined by nearly 33 percent. The 23,739 Active Listings for Sale have grown slightly over the course of the year, but remain 10.1 percent under 2010 inventory levels or about 2,700 units slimmer. All those crunches are really starting to pay off as we enter bikini season.

Last week marked the official end of year-over-year comparison to the 2010 tax credit period, but it's evident (and not uncommon) that we'll have at least one transitional week to count up the final sales of the tax credit. This week's numbers are still about as negative as the Minnesota Twins have been this May, but we anticipate a more positive showing in the weeks to come. For the week ending May 7, Pending Sales were down 27.7 percent to 819 purchase agreements signed, marking the 22nd consecutive week of year-over-year declines in Pending Sales.

There are 23,475 homes to choose from in the 13-county metro area – 210 more than last week but 10.3 percent fewer than last year at this time.

One interesting blip on the radar is that New Listings were up 14.5 percent from last year. A total of 1,774 new homes were introduced to the market, similar to last week but ahead of last year's post-tax credit drop-off. Pending Sales over the next four weeks will be compared to 830, 634, 600 and 527, respectively. Those are numbers that even the Minnesota Twins should beat.

New Listings for the week ending April 16 were down 21.5 percent from the same week in 2010 to 1,846 properties. That's a smaller decline than the 3-month average, which is down 26.4 percent. It appears that year-over-year declines in listing activity peaked around the end of March when motivated sellers were eager for buyers to consider their properties during the run-up to the end of last year's tax credit deadline.

Pending Sales, too, predictably fell short of April 2010's credit-inspired five-year high-water mark. The 898 purchase agreements signed were 18.6 percent fewer than last year. That's on-par with the 17.6 percent 3-month average decline. Purchase demand is currently the highest it's been since the week ending May 8, 2010. Sales activity in 2010 peaked during the week that ended April 25 and then fell sharply, so we can expect a very different story in two weeks. The winner is still inventory, which plunged by 15.4 percent from the same week in 2010. It's worth noting that the number of active listings for sale ballooned at this time last year as sellers moved to take advantage of the increased buying activity. Notwithstanding, we haven't seen declines of this magnitude in nearly 15 months. It's a trend that will mean fewer options for buyers as well as improved market balance.

For the week ending April 9, sellers introduced 1,770 New Listings to the Twin Cities housing market. That's down an even 30.0 percent from the same week in 2010 when motivated sellers rightfully decided it was time to sell.

Current buyer activity simply cannot compete with an elevated 2010 incentive market. Pending Sales were down 22.7 percent from the same week last year to 838 contracts written. Drawing from a wider time frame can soften the theatrical plunge. Buyer activity was down 16.7 percent on average over the past three months. Comparing non-incentive markets to non-incentive markets also tells a more realistic story. Buyer activity was down only 2.3 percent compared to the same week in 2008.

The gap between this year's and last year's Active Listings for Sale has been growing for 10 straight weeks. There is also a pattern with year-over-year inventory levels, which are down 14.7 percent from 2010, 12.3 percent from 2009 and 28.3 percent from 2008. Those shopping for a home now have 22,869 options or about 27 active listings per purchase agreement signed for the week.

Daylight hours may be increasing but contrary to seasonal norms, the number of homes for sale continues to remain about the same. There are now 22,449 active listings in the Twin Cities, 14.4 percent fewer than last year. Nine consecutive weeks of year-over-year inventory decline bring a number of implications—mostly good, some not so good.

On the good side, sellers have fewer properties to compete with. This should quicken market times and increase seller leverage at the closing table. Improving demand with unchanging supply has the tendency to lift prices. On the not-so-good side, buyers have fewer options than in recent years. In light of skyrocketing affordability, historically low interest rates, foreclosure bargains, favorable negotiations and low prices, buyers are still proving to be either very patient, highly cost-conscious or both. Even so, purchase demand has more or less kept pace with non-incentivized 2009 levels.

New Listings decreased for the 14th consecutive week, dropping 19.2 percent to 1,738 properties. Pending Sales hit their highest weekly total this year but still trail last year's pace, down 25.1 percent year-over-year to 840 purchase agreements signed.

Click here for the full Weekly Market Activity Report. From The Skinny.