While the U.S. housing market made a sizable improvement in 2013, surpassing the expectations of many industry insiders, many are still shy when it comes to officially labeling the effort as an actual comeback. It was the combination of low inventories and historically low interest rates that fueled the movement; however, for many, the true story lies in the performance of 2014.

While the overall positive trends have continued as expected so far this year, mortgage rates have also begun creeping up, putting a damper on consumer perceptions of the affordability of homes for many new would-be homebuyers.

As expected, home inventories have begun to stabilize and new home construction is returning to the option table. Both are positive signs to economists. To give more credibility to the possible comeback, many homeowners are once again seeing positive equity in their investments, something so many have desperately longed for over the past six years. Thirdly, despite recent increases, mortgage rates remain at dramatically low levels making homeownership  opportunity for wide range of consumers.

2013 also left economists with another positive sign as foreclosure inventory dropped to multiyear lows. “There has been a sharp decline in foreclosures and abandoned properties in Michigan and across the country and we are excited about renewed opportunity for appreciation and growth,” says Pam  Denne, Vice President/Sales for Guardian Mortgage in Grand Blanc, Michigan. “As fewer foreclosures make their way onto the scene, economists will no doubt become more and more certain about the future of the housing market and its overall stability.”

To put it all into perspective, Zillow.com recently provided a comparison of the housing supply comparing first quarter 2014 to the same period in 2013. The analysis revealed:

Cities With an Increase in Inventory:

• Las Vegas, Nevada – 34 percent
• Phoenix, Arizona – 32 percent
• Riverside, California – 27 percent
• Washington, D.C. – 25 percent
• Orlando, Florida – 22 percent

Cities With a Decrease in Inventory:

• Houston, Texas – 27 percent
• San Antonio, Texas – 24 percent
• Boston, Massachusetts – 23 percent
• Austin, Texas – 20 percent
• Columbus, Ohio – 18 percent

Texas is leading the way in the decrease of current home supplies in the nation. Why?  Simply put, demand in Texas is exceeding supply in many of the state’s largest housing markets. In general, throughout the recession, Texas has held strong with stable job rates, no income taxes and quality education – all of which have continued to make Texas increasingly appealing to companies, many of which have relocated their corporate offices to the Lone Star State over the past six years.

Although we’re not there yet, many view the continued performance of the housing market for the first two quarters of 2014 to be incredibly positive and true signs that the economy and housing market just might be making that official comeback yet.