According to statistics released by the Realtor's Association of South Central Wisconsin,home sales during October 2009 were up for Dane County (the county in Wisconsin where Madison's located) compared to homes sales 1 year ago. Similarly, Wisconsin sales and South Central Wisconsin home sales are up compared to the same period, a year earlier.   For the first time since the recession began nearly two years ago, home sales are up in the geographic areas mentioned above compared to last year at this time. The Wisconsin realtors association just released third quarter sales numbers that showed a overall Wisconsin increase of 5.8% increase compared to the same period in 2008. The numbers are even better for the South Central Wisconsin area, where a12.5% increase was observed compared to the previous year. The South central Wisconsin area showed the strongest growth in the State. The Dane County area in particular saw an 11 percent increase in home sales compared to that same third quarter time frame in 2008. That translates into approximately 200 more home sales in the third quarter of 2009 compared to the third quarter of 2008. The Madison Wisconsin real estate market isimproving particularly in first time buyer type homes. The real estate industry in this area is encouraged and cautiously optimistic about these statistics as they represent the fifth straigh month that the sales totals in South Central Wisconsin have posted gains compared to 2008. Sales in Dane County were 25% higher than October 2008 and South Central Wisconsin sales were 32% higher for that period compared to 2008. In practical terms, there is undoubtedly  a significant response to the home buyer tax credit. In the past 4 years in this area over about 40% of the homes sold were sold for less than $200,000, indicating  a sizeable number of first time buyers. In 2009 that number jumped to 48.5% which to me indicates the tax credit is definitely stimulating the first time home buyer market. While this is good news for owners of homes in the lower price ranges. Hopefully, the newly added tax credit for existing homeowners will provide similar type responses to a much larger group of buyers contemplating a purchase of "move up residences". and thus providing a broadly based improvement in the overall local real estate market.