According to an MSNBC article this morning, Sales of existing homes rose in January by the largest amount in two years. Does this mean the national housing slump is over?
The National Association of Realtors reported Tuesday that sales of previously owned homes rose by 3 percent last month, the biggest one-month increase since a 3.3 percent increase in January 2005, a time when housing was roaring toward the peak of its five-year boom.
According to the article on MSNBC, the median price of an existing home sold in January dropped to $210,600, a decline of 3.1 percent from a year ago. The January decline was the third-biggest drop in history.Analysts said that the decline in prices was actually an encouraging sign that home sellers are starting to adjust their asking-price down and this should help speed the correction in housing.
More good news: sales rose the most in the West, up 5.6 percent, followed by gains of 4.8 percent in the Midwest and 2 percent in the South.