US used home sales get big boost

03-24-2009 | AP

February sales rise biggest in six years but prices will continue to decline

Panama Star NEW YORK. 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 remaIn tied up in the foreclosure process and are not yet for sale. Plus, as the recession deepens and job losses mount, many buyers are will 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.