Tri-State Realtors aren't uncorking champagne just yet. But sales of existing homes jumped considerably in February from January in both Vanderburgh and Warrick counties, making the Realtors cautiously optimistic about the economy's future.
Chris Dickson, secretary and treasurer of the Evansville Area Association of Realtors and an ERA First Advantage Realty Inc. associate, said sales of existing homes in Vanderburgh rose about 40 percent in February from January.
The sales totaled 132 in February, compared with 94 in January, he said.
Sales in Warrick County improved by 34 percent in February, according to Dickson. He said the Warrick sales totaled 43 in February, compared with 32 in January.
The jumps appeared to follow a national pattern in which sales of existing homes rose 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, said economists.
According to the economists, the sales, while still at levels not seen since 1997, finally may be coming back to life after declining sharply after the stock market plunge in autumn.
The National Association of Realtors said sales of existing homes grew 5.1 percent to an annual rate of 4.72 million last month, up from 4.49 million units in January.
It was the largest monthly sales jump since July 2003, with first-time buyers accounting for about half of all transactions.
Sales had been expected to dip to an annual pace of 4.45 million units.
The results, which came after a steep decline in January, may mean that sales activity has returned to December's levels, but still remains lower than most of last year, economists said.
"If January was a disaster in housing, February may be the rebound month," said Joel Naroff, president of Naroff Economic Advisors.
Robert Reid of Evansville-based Appraisal Consultants said, "I think we've had a couple of years when sales were down. We should start stabilizing and improving."
Dickson said he is pleased.
"My opinion is we are seeing this year is going to be a growing year," he said. "I think we've seen the bottom."
Dickson partly credited the current 4.9 percent average interest rate for 30-year fixed rate mortgages for the increase in sales.
Dickson also credited President Barack Obama's policy, which allows a tax credit of $8,000 to any new buyer who hasn't owned a home in the last three years.
"There are lots of incentives for buying a home today. Mortgage money is inexpensive right now, and we're finding buyers are having no difficulty getting mortgages through banks in the Tri-State, including Henderson, Ky.," Dickson said. "Banks want to lend, but the person taking out a mortgage must have reasonably good credit and a down payment of at least 3.5 percent."