Looks like May saw some investors and firsttimers grabbing up deals. Sales prices were down 6.3% from May of 2007 and existing-home sales rose 2%. 1/3 of the total number of sales in May were short or distressed sales. Here is a great article from Market Watch.
http://www.marketwatch.com/news/story/existing-home-sales-rise-2-may/story.aspx?guid=%7BEE1CF54C-536D-4DC0-9B67-E9D23A1632AC%7D&dist=msr_6