US house prices have fallen by a third since 2006.
Whilst US house prices are still falling, sales of new houses are up 10% on the same time last year.
Sales of existing homes, which represent 94% of the US housing market, are at a 10-month high.
Lenders are now apparently approving loans of up to 80% of the purchase price for the first time since 2008.
(and Britain thinks 90% home loan is a problem!)
Potential supply is reduced as the number of homes coming onto the market is falling along with the number of people behind with their mortgage payments.
A quick recovery is unlikely as 25% of US homeowners are in negative equity and 20% have insufficient equity to qualify for a new home loan.