Home sales in Spokane County and statewide have declined so far this year compared with early last year, when tax incentives helped spur sales.

For the first four months of the year, 1,013 homes were sold in Spokane County through the Spokane Association of Realtors' Multiple Listing Service, down 22 percent from the year-earlier period, says Rob Higgins, the association's executive vice president.

Higgins says, though, that he expects sales in the second half to be significantly better than the second half of 2010, when sales fell after federal tax credits expired.

Continued improvement in the job market here will be key to increasing sales, he says.

"There is a positive feel here because there is some modest job growth being reported," Higgins says. "That's why I'm optimistic the second half of this year is going to see numbers quite a bit better than the second half of 2010."

Single-family home sales in early 2010 were boosted by federal income-tax credits of up to $8,000 for qualifying first-time homebuyers, and up to $6,500 for certain step-up buyers who bought a home of greater value than they had owned previously, Higgins says.

In all of 2010, 4,250 homes in the county sold through the MLS, a drop of 9 percent from the prior year. By year-end, fewer homes had sold here in 2010 than in any other year in more than two decades, Higgins says, adding, "We're hoping 2010 was the low year as far as sales. I think we can't go lower than last year."

The median home sales price in Spokane County through April of this year was $153,000, a drop of 4.5 percent from the year-earlier quarter.

The price declines coupled with stable mortgage interest rates make homes affordable for households with good credit and reliable jobs, says WCRER Director Glenn Crellin.

The statewide rating in the all-buyer housing affordability index was a record-high 152 in the first quarter, meaning the median-income household had 52 percent more income than would be needed to buy a median-priced home.

The first-time buyer housing affordability index for Washington state was 84.4, meaning 84.4 percent of households in the state could afford to purchase an entry-level home, he says.

Spokane County had even higher ratings of 182 in the all-buyer housing affordability index, and 95 in the first-time buyer index, WCRER says.