Yes, there are serious problems, but the housing market has nowhere to go but up, Calculated Risk author Bill McBride says.The correct question is: What's right with housing? And there is plenty.
1) Existing home sales were down 7.5% year-over-year in March. Wait, isn't that bad news? Nope - not if the decline is related to fewer distressed sales - and it is. (fewer foreclosures and short sales).
2) Mortgage delinquencies are down sharply. See: Fannie Mae and Freddie Mac: Mortgage Serious Delinquency rate declined in March and Mortgage Monitor: Mortgage delinquency rate in March lowest since October 2007, "Only One in 10 American Borrowers Underwater"
3) Mortgage credit is tight. Hey, isn't that bad news? Nope. There is only one way to go ...
4) New home sales are up significantly from the bottom, but are still historically very low. There really is no where to go but up.
Visit McBride's blog to read the other five.