"The Process of Recovery Has Begun"

Good news and bad news: Sales of existing homes rose in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the nation hit hardest by the housing bust.

However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.

The National Association of Realtors reported yesterday that sales rose 3.1 percent to a seasonally adjusted annual rate of 5 million units, up from June's downwardly revised rate of 4.85 million units. Sales had been expected to rise by 1.6 percent, according to economists surveyed by Thomson/IFR.

“The process of a recovery has begun,” said Joel Naroff, president of Naroff Economic Advisors. “It's not going to be short and swift, but it's begun nonetheless.”

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