With existing home sales down and new home sales up, this is telling us that the existing home inventory is dropping and the new existing home listings are coming on the market at a higher price. Buyers are still wanting the low priced homes and that supply is gone. There is a lag period where these buyers will come in the price they pay or the new sellers will drop their price. But the market is still recovering as shown by the new home sales which is not as priced sensitive.
It is my guess that the buyers will step up and start paying more because the inventory levels are not that high.