All we hear in the media is the worse about the slumping housing market. However the worst of the housing bust may be behind us, some economists say. Here are three reasons for their somewhat optimistic look on housing.

1. Fewer houses built mean fewer houses waiting to be sold.

In May, the number of new housing units completed fell to 1.534 million from 1.542 million in April and 1.61 in March. “The numbers [of starts] are at a low enough level that the inventories can start to be worked down,” says National Association of Home Builders Chief Economist David Seiders.

2. Mortgage rates are going up, but the economy is strong enough that people can afford the increase.

“The economy appears able to absorb these subtractions, especially since they remain on track to be smaller than what the market grew accustomed to over the past year,” says Action Economics Chief Economist Mike Englund in a June 19 note.

3. There’s no improvement yet, but the decline has slowed.

“I don’t think we’re out of the woods here, but we may not be that far from the bottom. Since late last year things have been trending downward but not nearly as rapidly now as during 2006,” says Seiders.

Source: BusinessWeek Online, Maya Roney (06/20/2007)

John O’Dell is a licensed Real Estate Broker, Civil Engineer and General Contractor