Though the economy has shifted to the "slow lane" in terms of growth, several indicators point to a housing market on the mend, according to a new report from real estate data and analytics firm CoreLogic. 

According to the firm’s May MarketPulse report, nationwide sales were up 20 percent in the first quarter, with March sales up 20 percent over last year to 410,000, the highest mark since 2007. Distressed sales were making up a smaller percentage of the market, falling to 26 percent of sales in March, with REO sales dropping from 25 percent of the market in January 2011 to only 16 percent in May. That indicates lenders are shifting to loan modifications and short sales, helping to reduce downward price pressure. The report suggests that prices ought to hit bottom sometime around Memorial Day. 

Bank’s books are also "experiencing a slow and steady improvement" with the number of mortgages  more than 90 days delinquency rate in March falling to 7 percent, the lowest rate since July 2009.

"This decline in serious delinquency represents a significant reduction of approximately three quarters of a million borrowers," said CoreLogic analyst Mark Fleming in the report.

The most improved markets from a year ago are Phoenix, Ariz; Boise, Idaho; and Salt Lake City, Utah; while Albuquerque, N.M., Bridgeport, Conn. and Newark, N.J. were the worst-performing.