There is evidence the US housing market is healing after a four-year slump, but the danger of further price drops remains amid persistent job-market weakness, according to The Wall Street Journal's quarterly housing survey.

Inventories of homes listed for sale are down sharply across the US and have reached very low levels in some areas, including Boston and Sacramento, Calif. The decrease in supplies has sparked a return of bidding wars on lower-end properties in some neighbourhoods, but the national picture is mixed.

Wall Street Journal