In a photo made Tuesday, Oct. 20, 2009, a "sold" sign is shown in front of a home in Carmel, Ind. With homebuyers rushing to complete their purchases before a tax credit for first-time owners expires, a report Friday, Oct. 23, 2009 is expected to show strong September sales. (AP Photo/Michael Conroy) (The Associated Press)

Utah Home resales fell more than 10 percent during September compared to the same month a year ago.

That contrasts sharply with national numbers that show home resales rose to their highest level in more than two years. The impetus: Buyers are scrambling to complete their purchases before a tax credit for first-time owners expires.

In Utah, there were 938 existing home sales in September -- down 11.7 percent compared to 1,061 sales in September of last year. The 1,018 sales for single-family and condominiums in September also are down 8 percent when compared to sales a year earlier.

Dave Anderton, with the Salt Lake Board of Realtors, cautioned that numbers may be skewed when comparing Utah's and national sales because locally, seasonal fluctuations are not taken into account.

In Salt Lake County, the median price of all housing types sold in September was $205,000, down 6.8 percent compared to $220,000 in September of last year. Since June 2007 -- when home prices peaked at $243,000 -- the median price in Salt Lake County has fallen 15.6 percent.

By contrast, the national median home price in September was $174,900. As Salt Lake County's home prices continue to fall, Anderton said, "We expect sales will increase. This is what is currently happening nationally."

Ryan Kirkham, president of the Salt Lake Board of Relators, said three-quarters of the sales are for homes priced below $300,000.

"People shopping in

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the lower-price range will be able to take advantage of tax credits and other incentives, so they're more likely to buy instead of rent," he said. "But don't forget that while local and national numbers are important, consumers need to look at individual neighborhoods. There, some prices might be down while others could be up."

The National Association of Realtors on Friday said that September sales across the U.S. rose 9.4 percent to a seasonally adjusted annual rate of 5.57 million, from a downwardly revised pace of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters.

"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.

The inventory of unsold homes on the market fell about 7 percent to 3.63 million. That's a 7.8 month supply at the current sales pace, and the lowest level since March 2007. Nationwide sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago.

First-time homebuyers and investors are snapping up those homes and taking advantage of low mortgage rates. These buyers can also take advantage of a tax credit of 10 percent of the sales price, up to $8,000, if the sale is completed by the end of November.

The tax credit is so important to some buyers that they are adding a clause to their contracts, allowing them to back out if the sale doesn't close by Nov. 30.

While home sales and housing construction have risen steadily after hitting bottom earlier this year, most economists believe that the worst isn't over for home values.

Prices could see a double dip because rising unemployment is causing more foreclosures. The jobless rate, currently at 9.8 percent is expected to rise as high as 10.5 percent next year, causing more people to be unable to afford their monthly mortgage payment.

"There's more supply that's going to come into the marketplace," said Stan Humphries, chief economist at real estate Web site Zillow.com. "That additional supply will outpace demand."

With concerns about the housing market still prominent, Congress is considering several proposals to extend the tax credit for first-time buyers. Senators Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., want to extend it through June 30, and expand it to include all home buyers, at an estimated cost of $16.7 billion.

Realtors and homebuilders are pressing lawmakers to do so, arguing that the tax credit is crucial to get the housing market back on its feet.