According to the housing survey done by The Wall Street Journal, there is still a possible drop in home prices even with the evidence of recovery after a four year slump in the housing market.

Areas like Boston and Sacramento are some of the areas that are experiencing a downfall in prices of listed homes in the housing inventory.  The decrease in supplies has sparked a return of bidding wars on lower-end properties in some neighborhoods.

If the rate of unemployment did not improve, it will be hard to sustain demand and mortgage defaults will eventually lead to foreclosures, dumping more supply on the market.

Prices continue to stabilize in much of the nation but other places like Las Vegas is still down.  28% of borrowers in places like Miami/Fort/Lauderdale, Fla., are behind on mortgage payments compared to other areas like Minneapolis/St. Paul with 8.6% and 13.2% in the entire US.

The number of homes listed for sale is down sharply across the U.S., according to the survey. The supply would last four months or less at the current sales rate in the Boston, Sacramento, San Diego and San Francisco areas. A six-month supply is considered roughly balanced between buyers and sellers.

More than 7 million households are behind on mortgage payments or in foreclosure, and lenders eventually will put many of those homes on the market. Unless the job market improves, it will be hard to find buyers for all those foreclosed homes, and prices could again lurch lower.