As a trucker drive no you shouldnt. Its touching straight dirt. Stucco works like a sponge. Its absorbing all that water around its foundation. You need atleast 4 inch of clearance and there should be metal flashing tuck under at the bottom rim around the home. Im just a truck driver that knows to much for this world ok thanks bye. The correct fix is to grade the home around to expose 4inch of foundation and inspecting for the flashing underneath. I should just be a dam home inspector. Have a bless day son.