Sales of existing homes jumped more than 7% last month, indicating progress in the recovery of the housing market.

According to the National Association of Realtors, sales of previously occupied homes climbed 7.6% in August from July to a seasonally adjusted annual rate of 4.13 million units. The average sales price, on the other hand, inched up by 0.8% from a year earlier to $178,600. Despite the monthly increase, however, August remains the second-worst month for home sales in more than a decade as sales fell 19% from the same month a year ago.

Sales of residential real estate picked in spring, when the government provided tax credits of up to $8,000 to first-time home buyers. However, sales began to tank when the federal tax credit program expired in April and it has been a struggle for sellers to convince buyers to purchase residential properties since then.

Despite low home prices and the cheapest mortgage rates, buyers are still reluctant to make some purchases. According to experts, the sluggish job market and the worsening foreclosure rate are discouraging most buyers to invest in residential real estate.

“Nobody wants to see their investment go down after they buy it,” he said. “It’s as tough as I’ve ever seen it,” said Eric Matz, a Coldwell Banker real estate agent in the San Diego, California, area.

For the hottest real estate news, visit Rehab-Real-Estate.com right now.