CHAMPAIGN – Champaign County home sales fell off sharply in July.

The number of homes sold and closed was 175 – fewer than half the 374 sold and closed in June, according to the Champaign County Association of Realtors' Multiple Listing Service.

The July figures were also down sharply from a year earlier, when there were 337 sale closings.

But the drop-off from June may not seem quite so steep, given that May and June figures were unusually high, said Fred McDonald, the association's president.

"I think what happened was, people who would ordinarily have signed (sales) contracts in May and June hurried and took advantage (of the home buyers tax credit) by signing a contract in March and April," McDonald said.

Since sales normally take 30 to 60 days to close, many of those closings occurred in May and June.

"It was like they had four months (of sales) crammed into two," McDonald said.

"July was the first month we had after that income tax credit, for all practical purposes," he added. "We were expecting there was going to be a drop."

So far this year, Champaign County home sales are running slightly ahead of the same seven months in 2009 – 1,450, compared with 1,446 in 2009. But if the falloff persists, 2010 sales could end up behind 2009, which was considered a slow year.

One bright spot from the July figures: The average sales price was up slightly – $164,703, compared with average prices of $154,555 in June and $157,660 in July 2009.

McDonald found that encouraging. He credited the economic stimulus package with stabilizing prices.

"If that hadn't come through, a lot of homeowners would be in a difficult situation, especially when they had to sell," he said. "We'd be in real bad shape if the average sales price were low and sales activity was low."

The biggest thing that could help housing sales in the months ahead is job growth, McDonald said.

"People need stable jobs to feel confident about purchasing decisions," he said. "Even people who have had jobs a long period of time, in given situations, are asking, 'How stable is my job going to be in the future?'"

Apart from consumer confidence, McDonald said several factors make this a good time to buy.

"Prices are not bad, and I don't know if interest rates can get any lower," he said. "They're well below 5 percent on a 30-year, fixed-rate loan."

July's sales volume, in dollar terms, was also down. Sales totaled $28.8 million, down from $57.8 million in June and $53.1 million in July 2009.

So far this year, sales volume is running a tad behind the same months in 2009. The association said $213.7 million in home sales were closed during the first seven months of 2010, compared with $215.1 million during the same period of 2009.

The Champaign County Multiple Listing Service figures cover single-family home sales in Champaign County and parts of Douglas and Piatt counties.

McDonald, who is associated with The County Realtors in Tuscola, said that in Douglas County, he's seeing more activity from people moving into the area, rather than from local residents moving up or downsizing.