Pre-Owned U.S. Home Sales Rising at Fastest Pace in Nearly Six Years

Statistics provided by the National Association of Realtors indicate that sales of previously owned homes in the United States rose 5.1 percent in the month of February, which is the fastest rising pace since July of 2003. Unfortunately, almost half of these purchases were either short-sale or foreclosure sales but it is still positive news given the current state of our nation's economy.

First-time home buyers are capitalizing on the opportunity to take advantage of the market while they can enjoy tax credits, reduced prices and minimal interest rates. However, this is not an ideal indication of an overall housing correction because of the fact that inventories are not reducing.

The widespread instability of the housing market has been a key component to the tragic economic collapse that our nation has endured over the past couple of years. If the housing market can be miraculously revitalized in the future, it will play a significant role in reviving our economy from the recession.

The Chief Economist for the National Association of Realtors, Lawrence Yun, addressed the situation by saying, "Our analysis shows that distressed homes typically are selling for 20 percent less than normal market price, and this naturally is drawing down the median price."