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After a half-decade of falling home prices and decreasing sales, some experts say that the single-family housing market is finally beginning to turn around. Some metropolitan communities report an increase in both home prices and home purchases. We've been in a housing depression since 2007 but we may be climbing out of it now. Barclays Capital analyst Stephen Kim argues that "the pieces for a housing rebound next year are beginning to fall into place." The CEO of the National Association of Home Builders, Jerry Howard, believes, "with the exception of really hard-hit markets, the vast majority is ready to turn around."

The CEO of Realogy, Richard Smith, suggests that we're not out of the recession quite yet. Smith thinks it's premature to assume this recovery will be a big one. While volume is improving, housing prices are still "under pressure," Smith argues.

The signs of recovery are finally being seen. For potential home buyers, rental prices are on the rise, which means that for the first time in many years, consumers are actually considering purchasing a house. Existing home inventory is at its lowest level in five years; inventory of new homes is at its lowest in 40 years; mortgage loan delinquencies have finally peaked; and possibly most importantly, job growth is increasing at last.

The National Association of Realtors says that existing home sales will probably go up another five percent in the next two years and that prices will increase two percent in these years, and four percent in 2014. While the recovery may not be immediate, the signs certainly tell us that the housing market is making a comeback.

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