Resale of Existing Homes Jumped by 3.1%

This just might be the turn in the numbers we've been waiting for: Resale of existing houses jumped by 3.1 percent in July to the highest level in nearly half a year.

On top of that -- and to the near total surprise of Wall Street analysts -- new home sales also rose 2.4 percent, according to the Commerce Department.

Resale were up almost everywhere: Up 9.7 percent in the Western states, up 6 percent in the Northeast, one percent in the Midwest. Unfortunately, only the south saw a slight decline -- one half of one percent.

New home sales showed a similar pattern: Up an amazing 39 percent in the Northeast, 10 percent in the West, 8.2 percent in the Midwest and down by 2.5 percent in the South.

Now, in fairness, before we get too enthusiastic about these sales gains, let's be frank about what's pushing this trend: The large numbers of short sales and foreclosures in many once-booming markets are cutting prices to the bone.

But rock bottom prices are also bringing in a flood of first time buyers, fence-sitters and investors who've been waiting for hard, statistical evidence that the cycle is flattening out.

Keep this in mind too: The July resale numbers represent transactions closed before the passage of the new $7,500 federal tax credit. When the impact of the credit begins kicking in during the coming several months, you can bank on even higher sales numbers ... and a turnaround in prices.

This is still the best time to buy and sell homes on the Mississippi Gulf Coast.  Any homes for sale between $125,000 and $185,000 has an average days on the market of 45 days, compared to just a few months ago when the average days on the market reflected 63 days.

For more local news watch "Let's Talk Real Estate with Al & Dee" every Saturday morning at 11:30 on FOX Channel 25