13 WTHR - Indianapolis News |Realtors encouraged by home sales stats

Realtors encouraged by home sales stats

Hamilton County - The Dow made a huge jump this morning when new home sales saw an unexpected increase. Experts say falling prices and cheaper mortgage rates sent home sales up 4.7 percent in February and existing home sales up 5.1 percent.

For first time home buyer Mark Calub, recently transferred from California to Indianapolis, those statistics can mean big savings.

"Now I can afford it with interest rates so low. The $8,000 tax credit, which is very attractive. It'll allow me to buy a home right away," said Calub.

Much of the housing growth last month came from depressed markets like Phoenix, Miami and Las Vegas. While the tick in sales looks promising, according to the Commerce Department, median prices on existing homes saw the second biggest drop on record and foreclosures accounted for 45 percent of all sales.

Some Central Indiana realtors are encouraged by the national numbers along with some analysts who believe that a gradual recovery is underway.

"When a housing market is in this much challenge as it is here and across the country, the recovery has to start in its infancy with inventory and it has to start with the lowest end homes getting absorbed, and that's slowly starting to happen now," said Greg Cooper, real estate broker.

Real estate agents in central Indiana say that homes geared to first time buyers under $120,000 are selling well and according to some builders, even new home sales are picking up.

"It's really picked up the last six weeks. People are out looking at homes. We've had more sales," said Steve Masuccio, Drees Homes division president.

But with the highest jobless rate in a quarter century and shrinking household wealth, the housing market's recovery is tied to the overall health of the economy which still faces a long road to recovery.