Here’s Barry Ritholtz’s one sentence summary of the recovery in housing:
The present RRE situation can be best described as massive Fed stimulus + government induced foreclosure abatements = some stabilization.
which tallies pretty much with mine. Actually, I’d go a bit farther. The markets which have shown the greatest recovery recently, e.g. Miami, are doing so through cash sales to overseas buyers. That’s not a model that can be expanded to, say, San Bernardino.
The housing crisis is still a local problem with national implications and, if anything, the local conditions in a lot of the places with the most problems have gotten worse.