Jul. 24--Good national economic news is hitting home, as the depressed housing market continues to rebound and the stock market hits its own recovery benchmark.

The Dow Jones industrial average on Thursday closed above 9,000 for the first time since January and at its highest level since November, a good sign for investors whose portfolios were decimated when the Dow sank below 6,600 in March.

The latest stock market jump came after an encouraging housing report showing that sales of existing homes rose nationally for the third straight month and reached their highest level since October.

In the Omaha area, real estate representatives have been tracking a recovery in the local housing market since spring. For four straight months, the total of homes placed under contract has increased compared with the same period last year.

Although the recovery began in the starter-home market, the latest housing numbers indicate that the rebound is starting to spread to higher-priced homes.

On top of Thursday's positive national housing news came stronger-than-expected earnings from such corporations as Ford, eBay and AT&T.

Scott Strain, senior director of research for the Greater Omaha Chamber of Commerce, said recent corporate earnings are stronger not just because of cost-cutting, but because of a growth in revenue.

"I'm really encouraged by what's going on at the national level," Strain said.

Russ Manners, senior vice president of the Smith Hayes financial services corporation, said people have come to realize that the economy is not "going over the abyss" and that some businesses are doing all right through the recession.

"People have gradually gotten just a little bit more comfortable," Manners said. "I think that what has happened here is time."

As investors recover their earlier losses, Manners said, they will feel better about their personal finances and might look to spend more, which would provide another economic boost.

But Manners said the economy still needs time to recover. People need more time to pay down personal debt and build up savings, he said, and the stock market will continue to be choppy.

"There will be these periods where we will be tested," he said.

The metro Omaha housing market has continued to gain traction as the year has progressed.

For the first six months of this year, 355 more homes were placed under contract than in the first half of 2008, according to statistics from the Omaha Area Board of Realtors.

Most of the recovery has come thanks to first-time homebuyers and an $8,000 tax credit the federal government is offering.

In June, however, pending home sales in the $200,000 to $299,999 price range were up compared with June 2008, according to a report from NP Dodge Real Estate. That turned around a slide in the month-to-month comparisons.

But caution about the housing rebound remains.

The National Association of Realtors says new home appraisal standards are causing sales to be lost.

Joe Gehrki, a CBSHome agent who is president of the Omaha Area Board of Realtors, said foreclosures and short sales, in which a mortgage holder takes less of a payoff than is owed on a house, are stretching out the average time it takes to complete purchases.

And the $8,000 tax credit expires Dec. 1, although talk has surfaced about Congress extending federal housing incentives.

Gehrki said he hopes the local market continues on its path.

"The activity has been very, very strong."

This report includes material from Bloomberg News and the Associated Press.

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