'Worst is over' for housing, analyst says, as Aug. sales rise

By Stephanie Armour, USA TODAY

Sales of existing homes rebounded slightly in August after a record drop the month before, an indication that the worst may be over even though the housing recovery still is on shaky ground. Existing home sales climbed 7.6% to an annual rate of 4.13 million units, according to a report Thursday by the National Association of Realtors (NAR). But the pace is still weak, 19% below the 5.10 million-unit pace in August 2009.

Sales had plummeted 27.2% in July to the lowest level in 15 years a seasonally adjusted annual rate of 3.84 million units. The drop is largely attributed to a decline in home purchases following the expiration of a federal home-buyer tax credit of up to $8,000. Looking ahead, economists say Augusts' increase in existing home sales may be a sign that home sales will slowly pick up over the next year.

"This report is only good in the context of the incredibly bad report last month," say Mark Zandi, with Moody's Analytics. "But last month will be the low point in the cycle. When we look back years from now, it will be the bottom. The worst is over."

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