U.S. Sees Home Sales Jump

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A "For Sale" sign stands in front of a house on May 31, 2011 in Chicago, Illinois. According to the Standard & Poor’s Case-Shiller Home Price Index home prices fell in March in 18 of the 20 metropolitan areas monitored by the index, reaching their lowest levels since the housing bubble burst in 2006.

Renting is apparently overrated. Sales of U.S. homes rose in April for the first time in three months in a clear sign that the housing market is stabilizing. The jump in sales is attributed to employment gains (115,000 jobs in the month of April alone) and record-low mortgage rates, which are spurring buyer confidence and in turn eliminating what was once a major weakness in the U.S. economy. However, the recovery will be gradual as foreclosure reductions are just now beginning to take root. There are also signs that home prices may stabilize.