This week, optimists had no trouble finding fresh evidence to suggest that the housing market is recovering.
On Thursday, they learned from a Realtors' report that existing home sales hit the highest level in more than 3 years. And earlier this week, a Commerce Department report showed homebuilding permits have been rising at the quickest pace since June 2008.
But not everyone is convinced that the sector's momentum has staying power. Skeptics point to reasons why the housing sector might falter, just as it has several times over the past six years.
If the optimists and pessimists had to face off in front of a judge, these are the exhibits they might enter as evidence:
The Optimists' Case
Your honor, don't be blinded by years of bad news. Look at these recent statistics:
— Home prices rose by more than 7 percent last year, according to the widely respected S&P/Case-Shiller Index.
— Builders have been hiring again, adding workers at a pace of 30,000 a month over the past five months.
— The Federal Reserve plans to hold interest rates at historically low levels for a long time, making homes more affordable.
— The number of underwater borrowers, i.e., those whose mortgages exceed the value of their homes, fell by almost 4 million last year to 7 million, according to JPMorgan Securities.
Economy
For Some Ready To Buy, A Good Home Is Hard To Find