Is the Real Estate Market Recovering?

On Monday, a few signs pointed to the possibility that the real estate market in the United States has begun to stabilize and possibly even begun its trek to recovery. According to the National Association of Realtors, the number of existing houses sold jumped more than 5% in February compared to January’s data.

House Sold (Image: Flickr)

Although sales are still down by double-digit percentage points from this time last year, this month-to-month jump was the largest on record in over five years. The median price of a home was slightly more than $165,000.

Many reasons are hypothesized for why the sales of existing homes rose, however one factor that can’t be denied is the falling price of real estate. Compared to this time in 2008, the average price of a home is down more than 15%. In some areas of the country, prices are down more than 30%.

For those looking to buy a new home, unprecedented deals are now available. That said, considering the job losses expected throughout the rest of 2009, the number of people who can afford to buy a home is expected to decrease in coming months.