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WASHINGTON -- More people bought previously occupied homes in January. But the increase was driven by rising foreclosures and all-cash purchases by investors, while the number of first-time buyers shrank.

Prices sank to their lowest levels in nearly nine years, a troubling sign for the struggling housing sector.

Sales of previously occupied homes rose slightly to a seasonally adjusted annual rate of 5.36 million, the National Association of Realtors said Wednesday. That's up 2.7 percent from 5.22 million in December.

Still, the pace remains far below the 6 million homes a year that economists say represents a healthy market. And the number of first-time home-buyers .....
Read more: http://www.sacbee.com/2011/02/23/3424158/cash-deals-push-home-sales-higher.html#ixzz1EoB46eD8

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