After an improved December in housing sales, the inventory of previously owned homes listed for sale sank to 2.38 million.  That is the lowest level since March 2005.  The inventory of homes available comes in at 6.2 months supply which is about the six-month level considered a healthy, even market between buyers and sellers.

Housing prices were still down at the end of the year by 2.5%.  The discount for foreclosure properties rose to 22% from 20% in 2010 according to the National Association of Realtors.

Economists interviewed by the Wall Street Journal are calling an improving housing market.