WBOC TV News Channel 16 located in Salisbury, Maryland reported this information earlier today. I find it very encouraging that there are signs of new life in our economy. Everyone has been hard hit. Beginning to see some light at the end of the tunnel will further propel our national economy towards more prosperous times.

The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday show.

Sales of previously occupied homes rose for the third month in a row in June, the National Association of REALTORS reported. That hasn’t happened since early 2004, during the boom.

“The turnaround in the housing market appears finally to be here and indeed may be gaining some speed,” wrote Joel Naroff, president of Naroff Economic Advisors Inc.

Stocks jumped on the news, with the Dow Jones industrial average rising above 9,000 for the first time since early January.

Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country.

It was the highest level of sales since last October and beat economists’ expectations. Sales had been expected to rise to an annual pace of 4.84 million units, according to Thomson Reuters.

In another encouraging sign, the share of foreclosures on the market is shrinking. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.

And the glut of homes up for sale dwindled to 3.8 million. That’s a 9.4-month supply at the current sales pace and another important sign of a recovery. When the market balances at a 7-month supply prices should begin to stabilize, the REALTOR’S group said.

That probably won’t happen until next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.

Nevertheless, prices have risen for three straight months in about half of the 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday.

Ocean City, Md. View of Condos

The Ocean City condo market is improving as reported by the Coastal Association of REALTORS Multiple Listing Service. New contracts written were up 33% in June 2009 as compared to June 2008. The year date figures reflect an overall increase of 9%.

Properties that settled or closed in June 2009 were up 19.2% as compared to the same time last year.  We are noticing a definite increase in overall traffic and sales activity. I will continue to follow and report these trends to you.

The “Housing Report” also breaks down the inventory trends, and the market by price ranges.