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This time three years ago, the real estate market was simple - simply terrible. In virtually every part of the country, foreclosures were shooting up and prices were plunging.

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Today, the real estate picture is a bit more nuanced. In a moment, we'll check in on housing markets around the country, with realtors who've hung on during the ups and downs. Foreclosures are still rising, even as prices in some markets are stabilizing, and home-buying is beginning to look more attractive. NPR's Chris Arnold reports.

CHRIS ARNOLD, BYLINE: If you talked to some good economists back just before the housing bubble burst, they should have told you that it didn't make sense to buy a house back then.

MARK ZANDI: At the peak of the housing bubble, house prices were way out of line with people's incomes, so housing wasn't at all affordable.

ARNOLD: Mark Zandi is chief economist of Moody's Analytics, and he tracks home-prices around the country. He says the cost of owning back then was just too high compared to renting.

ZANDI: Way out of line with rents. It was slam dunk, you should rent. You shouldn't buy. All those things have reversed themselves given the collapse in house prices. So in many parts of the country, now it makes sense to buy, as opposed to rent.

ARNOLD: That's not everywhere, but on average, home prices have fallen 35 percent nationwide from their peaks. On top of that, right now we have all-time record low interest rates. Zandi says that those low interest rates are probably helping the housing market a little bit, but they're definitely not sparking a big home-buying resurgence yet. And that's a sign that housing is still in the dumps. Chris Mayer is an economist at Columbia University's Business School.

CHRIS MAYER: You're right. Low mortgage rates would normally bring people into the market with a real sense of urgency.

ARNOLD: That's not happening for a bunch of reasons. But Mayer says one is that it's just too hard for many people to qualify for the low rates. And this is a very hot topic in Washington right now. The Obama administration says that it's looking into a way to help homeowners to qualify, at least to refinance. That could help prevent foreclosures, and it's something that Chris Mayer has been pushing for.

MAYER: Even with record-low interest rates, we've actually seen rates of refinancing for people with high interest rates go down rather than go up. We think there are literally tens of millions of borrowers who could save an average of a couple thousand dollars a year if we were to open up refinancing in this market.

ARNOLD: Top federal housing officials expect to announce a new push in this direction in a couple of weeks. Of course, some neighborhoods need a lot more help than others when it comes to housing. Homes and condos in many parts of New York City, D.C., Boston, they don't exactly look cheap. Mark Zandi.

ZANDI: Well, interestingly enough, the most attractive single-family markets are in those parts of the country where prices have just literally collapsed - parts of Florida, Atlanta, Arizona, Nevada, parts of California. The price declines have been 50, 60 percent, and they've over-shot relative to income and rent.

ARNOLD: So economists say there are bargains out there, but buyers definitely need to do their homework.

Chris Arnold, NPR News, Boston.

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