By John Lyon
Arkansas News Bureau

LITTLE ROCK — September home sales in Arkansas were 9.85 percent higher than the same month a year ago, according to a report released today by the Arkansas Realtors Association.

Across the state, 2,298 homes sold in September, compared to 2,092 a year earlier. It was the first time since July and only the second time in 44 months that home sales were up compared to the previous year.

The total value of homes sold in September was $324.5 million, up 4.28 percent from $311.2 million in September 2008. The average sales price fell 5.07 percent to $141,193.

Both the increase in home sales and the drop in average sales prices can be attributed to the first-time home buyer tax credit, according to Arkansas Realtors Association spokesman Ethan Nobles.

“Before the new credit was signed into law earlier this month, people were rushing to buy homes throughout September so they could close on them by Nov. 30 — the deadline under the first-time home buyer tax credit before it was extended,” Nobles said on the association’s blog.

“Because first-time home buyers in Arkansas tend to purchase houses that cost around $150,000 or less, the average sales price dropped in September,” he said.

Nobles said it remains to be seen whether the upward trend in sales continued in October, but “anecdotal reports have been encouraging.”

Pulaski County had the most home sales in the state in September, showing a 7.12 percent increase from September 2008. Benton County had the second-highest number of sales, though sales decreased by 4.23 percent from a year earlier.

Washington County had the third-highest number of sales and saw an increase of 35.71 percent from September 2008.

Carroll County had the highest average home prices in September, up 2.81 percent from a year earlier, followed by Pulaski County, down 4.77 percent, and Washington County, up 1.41 percent.

The statewide average home price for the year is $144,830, down 4.19 percent from last year.