Sales are increasing and housing inventories are declining.

Some local real estate companies say they're seeing a steady trend of improvement, but they're not celebrating just yet.

"For the first eight months of the year we were encouraged with what we've seen and I think it'll be a good year for the real estate market in Grand Junction," Robert Bray said.

Those who work in real estate have been watching the market closely, noting the trends that make or break the industry.

Robert Bray, president of Bray Real Estate, says sales in Mesa County are up 13% and there are fewer bank owned homes available.

The homes that are for sale are going for more money.

"There are still some concerns,” Bray said. “You still have a lot of people waiting for the economy to look a little better and the fact is we still have a higher than healthy unemployment rate in the valley."

Annette Miller, with Heritage Title Co., is upbeat about the industry's prospects, but cautious because there has been an uptick in foreclosure applications.

"I’m curious to see what direction those are going to go,” Milller said. “Are they actually going to turn into completed foreclosures and once again add more bank owned homes into our market place?"

For now, realtors are optimistic.

Bray says another positive thing to note is more construction.

Home building permits are up 40% in the valley.

For more on this story, check out this week's edition of the business times.