WASHINGTON (AP) — Signaling a housing recovery is under way in much of the country, sales of previously occupied homes rose for the third month in a row in June.

The National Association of Realtors said today that home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Home sales haven't risen for three straight months since early 2004, during the housing boom.

"The housing market is healing," said Lawrence Yun, the group's chief economist.

Prices, however, are expected to keep falling well into next year because of a backlog of foreclosures that have yet to come on to the market. The median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May.