While new buyers might take comfort in the fact that deep declines in home values seem to have passed, more than 11 million current homeowners owe more on their mortgages than their homes are worth. In July, home sales were running at an annual pace of 4.47 million, an improvement over a year ago, but well below the high of 7.25 million reached in September 2005.

New-home sales also were picking up, lifting share prices for many home builders. A number of factors have helped nudge prices higher, including shrinking inventory — particularly on the more affordable end of the market. There is about a six-month supply of homes, according to the Realtors’ group, down from more than nine months last summer.

Concerns that a flood of distressed properties will soon hit the market were also receding. Banks have been taking more aggressive measures to avert foreclosures, which have been declining for almost two years, according to RealtyTrac.