Housing on the rebound

So says WSJ economics columnist David Wessel.  The evidence, at least on the national level, is compelling: sales are up by 10% over a year ago, inventories are down to a more normal six months, and prices are ticking upward. 

Wessel is careful to point out that bottoming out should not be confused with happy-days-are-here-again.  Housing starts are more than 50% below the pace of 2002, which is well before the bubble days.  One in four mortgages is underwater.  Still, this qualifies as very good news.  Housing will not drive this or any other recoveries over the next 10 years.  But it if can stop being a drag that would be a big overall plus.