Numbers from the Commerce Department reveal that housing starts and building permits were at an 18 month high in November.
The news comes after a report earlier this week that showed builder optimism is also at an 18 month high.
Still, the housing market will need to whittle down inventory before a true recovery begins.
TD Securities economist Eric Green estimates that it will take two to three years to work through the bloated inventory.
He predicted the housing sector will be "under pressure" through the first half of next year.