FENTON -- The housing market in one Mid-Michigan community is showing signs of picking up, but the progress is slow.

"We are up 10% from last  year," says Patrik Welty of Legacy Realty in Fenton.  Welty gave us these statistics specifically for Fenton, Lake Fenton and the Linden School District.

After 4 years in a housing slump, the signs are encouraging, but slight, he says, and there is a long way to go.  "All of the leading indicators are pointing toward a continued gradual recovery".

New home construction is up in this area as well, but again, cautious optimism from contractors.  "There's more construction now than in 2009 by a long shot," says Frank Portelli of Genesis Custom Homes, "but I don't think we are going to see the market of 2006 for a long time."

Portelli as well as homeowners we spoke to in the area tell NBC 25 that most of the sales are still occurring in places like lakefront properties that are more desirable and that many people are still trapped underwater in mortgages with little hope of selling.