In this Sunday's gospel the people ask Jesus for a sign they can "see and believe in." Beleaguered homeowners and businesses waiting for a sign that recovery in the troubled housing market is near may have received it: The U.S. Commerce Department reported Monday that new home sales in the U.S. rose in June by the largest amount in more than eight years.

The report is another encouraging indicator that the beleaguered housing sector is finally coming back to life. Last Thursday the National Association of Realtors said that home resales posted a monthly increase of 3.6 percent in June.

Along with greater numbers of houses selling, the rate of home price deterioration has slowed and in some places leveled off, according to the widely watched Standard & Poor's/Case-Shiller home price index. The index, which tracks home prices in 20 metropolitan areas, rose 0.5 percent for the three-month period ending in May, compared with the three months ending in April. It marked the index's first increase after 34 straight months of decline.

The home-sale numbers surprised Robert Shiller, the Yale University economist who helped create the Case-Shiller indexes. "The change in momentum here is very significant," he said. Shiller expects home prices to remain at current levels over the next five years, possibly declining a little further before bouncing back.

Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.

Source: Articles by Nick Timiraos and Kelly Evans for the Wall Street Journal and Alan Zibel for Associated Press