Housing market shows improvements but struggles remain

While the housing sector continues to struggle in its emergence from the recession, racking lenders' consumer credit risk management policies in its wake, home sales do appear to be improving. According to a report released this week by RE/MAX, home sales in October were 9 percent higher than during the same period in 2010, marking the fourth straight year-over-year increase for the figure. While foreclosures still plague the market, they appear to be waning, as the scourge of the housing bubble continues to recede. The report found overall housing inventory dropped for the 16th straight month. "It appears that home sales are coming more closely in line with the levels we saw last year, which should hold up through the winter months," said Margaret Kelly, CEO of RE/MAX. "While it's good to see sales still running higher than last year, at some point we would like to see prices rising higher than the previous year, as well." Recent gains in retail sales and consumer confidence may also herald improvements in the housing sector. However, a recent FICO report warned that housing prices may not recover anytime in this decade.