Home sales in the Baltimore area rose 2 percent in June -- the first increase since January 2007, statistics released Friday showed.

Sales increased in every jurisdiction in the metro area except Baltimore City, where sales slipped 1 percent. But even city sales showed a big improvement over the month before, The Baltimore Sun reported Friday.

Housing prices continue to fall, the Metropolitan Regional Information Systems said.

A January 2007 increase of nearly 4 percent in home sales proved to be an anomaly, the report said. It came after a year of declines and was followed by even worse declines.

The continued decline in prices, combined with a federal $8,000 tax credit for first time home buyers, may boost home sales, the multiple-listing service said.