This beautiful chart from today's Case-Shiller house price report shows that housing has made a comeback.
Both the 10 and 20-city composite indices had their highest increases since summer 2006. "This marks the highest increase since the housing bubble burst," according to David Blitzer Chairman of the Index Committee at S&P Dow Jones Indices.
While declining inventory has helped support home prices, housing analysts have said housing is also seeing a "positive feedback loop" i.e. when people think home prices are rising, they believe they will keep doing so, and credit conditions will , and this increases demand for homes.
Of course some warn, that home prices are being driven by investor demand and not by more traditional homebuyers, and that the rise in home prices can't be sustained.
Read more on the details of the report, see here.