Home tax credit drives sales

First-time buyers can get a credit up to $8,000, and other buyers are eligible for a credit of $6,500 as long as they have lived in their homes at least five years. Congress also expanded it to include buyers who already own homes. That's good news for the Bay area's fragile housing market. Real estate agents say the tax credit is essential for selling off inventory. Home prices have plummeted, and that has enticed buyers, but many still are on the sidelines. Home sales in the Tampa-St. Petersburg-Clearwater area increased 20 percent in the third quarter, which ended Sept. 30. Experts credit the increase mainly to first-time buyers trying to take advantage of the tax credit. The area saw 7,795 sales in the quarter, up from 6,502 during the same period a year ago, according to the Florida Association of Realtors. At the same time, the median sales price fell 17 percent to $140,400. People want to take advantage of deep discounts, but they have to sell their existing homes to move up. With nearly half of the metro area's homeowners owing more than their homes are worth, many can't afford to move.

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