Mobile Realtyreality

While the story is very encouraging, it is also a bit disheartening to see home prices fall. I'm not sure the national ratio holds true here in Mobile as I do not have the latest statistical information from the local MLS. Interest from buyers is definitely up due in part to the $8,000 tax credit to first time home buyers. In my own opinion, I believe the local market will improve dramatically as the year progresses. Some people are tired of waiting to sale their homes and others are itching to buy. Eventually, and sooner than later, the market will dramatically improve.

"Sales of previously occupied homes jumped unexpectedly in February by the largest amount in nearly six years as first-time buyers took advantage of deep discounts on foreclosures and other distressed properties.

Economists said sales, while still at levels not seen since 1997, may finally be coming back to life after declining sharply following the stock market plunge last autumn.

Prices, however, are expected to keep falling well into the year. Tens of thousands of homes reman tied up in the foreclosure process and are not yet for sale. Plus, as the recession deepens and job losses mount, many buyers are likely to stay on the sidelines.

"The four-letter word in the housing market is 'jobs,'" said Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies. "If you're worried about having a job tomorrow, you're not likely to buy a home now."

The National Association of Realtors said Monday that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, from 4.49 million units in January.

It was the largest monthly sales jump since July 2003, with first-time buyers accounting for about half of all transactions. Sales had been expected to dip to an annual pace of 4.45 million units, according to Thomson Reuters. The results, which came after a steep decline in January, mean that sales activity has returned to December's levels, but still remains lower than most of last year." For the full story, see Home Sales See Unexpected Boost.