Pending and closed home sales increased significantly in Pierce County last month as first-time homebuyers scrambled to take advantage of a tax credit that was set to expire this month, according to Northwest Multiple Listing Service figures released Thursday.

Pierce County’s pending home sales – where an offer has been accepted – spiked 55 percent from the same time last year to 1,174. It’s not the most pending sales in a month for this year, but it’s a significant uptick from last October.

Closed sales increased by 22 percent to 880. Meanwhile, the number of homes for sale in the county continued to drop and the county’s median home price dipped again to $219,700 as buyers continue to target lower price ranges. In October 2008, the median home price was $241,000 – a difference of 8.8 percent.

King and Snohomish counties also witnessed notable increases in pending sales, which were up 70 percent and 91 percent respectively.

The threat of an expiring tax credit did create some urgency for buyers who wanted to get a deal closed before the end of November, said Kevin Mullin, incoming president of the Tacoma-Pierce County Association of Realtors.

“It’s first-time homebuyers, definitely. They are still making up the lion’s share of the market,” Mullin said.

Rhonda Gray, a Realtor with Windermere Real Estate Puyallup, said she has three homes in escrow right now and another two buyers who aim to purchase homes by the end of year.

“All of a sudden I’ve got all this activity when this has been my worst year,” Gray said. “I’m seeing my listings selling and buyers are out looking.”

Dick Beeson, a Tacoma Realtor and MLS director, said the county’s inventory appears to be stabilizing – meaning fewer homes are coming on the market. A contracting inventory can mean increasing home prices as the supply begins to better match the demand.

In October, the number of homes first listed for sale – 1,456 – wasn’t far from the 1,515 homes listed in the same month last year. The county’s total inventory of 5,591 homes for sale was down nearly 23 percent from last year.

The national real estate industry pushed to expand and extend the housing tax credit. Locally real estate professionals hoped it would help spur more sales.

“It can’t hurt anything,” said Larry Bergstrom, president of Crescent Realty in Spanaway.

Kelly Kearsley: 253-597-8573

kelly.kearsley@thenewstribune.com