New construction on apartments and single family houses reached its highest point in September in more than four years. Richard DeKaser, who is deputy chief economist at the Parthenon Group, says the latest numbers are part of a series of positive recent indicators for the housing market, including mortgage applications and high confidence levels among home builders.

DeKaser credits the slowly rebounding housing market to a lower supply of homes for sale. "Today, in fact, the number of new homes available on the market is lower than it has ever been," he says, "I don't think there is any question any longer as to whether the market has turned, the question now is how strong the recovery will be."