According to the Case-Shiller home price index, the sales of new and existing homes appear to be gradually going up. The inventories are also going down, while the prices seem to be stabilizing, an indication of a probable housing rebound. This could signal some light at the end of a tunnel. Since the crash in the housing sector largely contributed to the global economic recession, a housing rebound is vital in fixing the financial markets. Recent research by The National Association of Home Builders (NAHB) which is a Washington-based trade organization revealed an index indicating that the housing market is an area where economic upturn is ongoing. To come up with these results, the index made use of three categories of monthly data that are independently collected and indicative of economic improvement. The data included house prices, single-family housing, and employment. According to this research, the improvement of the housing sector can be largely attributed to a well-diversified economy based on improved healthcare, a high level of education as well as adequate retirees. Since November last year, the sales of homes appear to be steadily rising. The demand for houses seems to have gone up, something that is believed to counter the economic slump caused by the foreclosures, low mortgage rates, and the tax credit program for first-time homebuyers among other distressed sales. In addition, there is an impression of progress in lowering the inventories which are vital in controlling the prices of homes. Some analysts indicate an impressive improvement for new home inventories with the supply of the homes for sale has gone down (Cooper par 5). On the other hand, the validity of this data is highly disputed and the hope of a housing rebound could soon be over. For instance, an American government program that volunteers to give $ 8,000 to new homeowners is set to expire in November this year. For this reason, there has been a lot of false demand for homes during this year before the expiry date of this program. One of the owners of a real estate agency, The Norris Group warns people about having too much expectation into the increased sales of homes. Furthermore, the foreclosure moratoriums are artificially lowering their inventories and thus, these could be false indicators of a housing rebound. Even though homebuyers could be plentiful at present, the supply of houses is also likely to increase thus reducing the prices of homes. According to the National Association of Realtors, during the period that their home sales were at their peak, they recorded a surplus of foreclosed homes and also in their adjustable-rate mortgages. Moreover, an influx of newly-built houses has invaded the housing market, reducing the number of homes that are likely to be bought by people enticed by the low mortgage rates. Since February last year, a lot of single-family homes have been constructed. Recently, home builders have considerably reduced the prices of constructing single-family homes so much that their inventories are likely to keep on going down even as they continue to construct more homes. Nonetheless, single-family home builders are likely to face stiff opposition from other home mar