(RALEIGH) -- The housing sector, hit hard by the recession, is still grappling with a large number of bank owned and foreclosed homes on the market. Lou Baldwin, President of the North Carolina Association of Realtors said patience may be a virtue if your home has lost value.

"I believe if you can make your payment and see this through that the best thing to do is to hold on to your home.  I think there is a very good chance, and we're seeing indications, that home values have stabilized and that they will be on upswing," said Baldwin.

The number of U.S. homes purchased via short sale hit a three year-high in the first quarter of 2012, up 25 percent from a year earlier, according to a report on foreclosure-related sales.