The number of existing homes sold in January in the Northeast plummeted nearly 15 percent compared with the previous month, far outpacing the rest of the country, according to a report released today by the National Association of Realtors.

Year-over-year, existing-home sales fell 23.8 percent in the Northeast, while prices fell 14.7 percent, the report stated.

“We try not to read too much into the month-to-month variations, but the Northeast is down quite sharply from the previous year,” association spokesman Walter Molony said.

Nationally, home sales in January fell 5.3 percent from December and 8.6 percent from January 2008. The Northeast did particularly badly when compared with the Western region, where home sales remained flat month-over-month and increased 29 percent compared with the previous year.

About 35,000 homes were sold last month in the Northeast, a region that spreads from New Jersey and Pennsylvania up through Maine, for a median price of $228,000. That means half of homes sold for more and half sold for less.

The prices include homes that were sold in foreclosure or in short sales, in which sellers and mortgage lenders avoid foreclosure by accepting less for the house than the balance of the mortgage. About 45 percent of the sales were distressed, Molony said.

Buyers in January were waiting to see what types of tax credits or incentives would be offered in the federal stimulus package before making purchases, Lawrence Yun, an economist for the Realtors association, said in a statement.

Higher loan limits, the stimulus’ $8,000 first-time home buyer tax credit and lower interests rates should help sales in the Northeast, Molony said.

The National Association of Realtors extrapolates data from the Multiple Listings Service, which it says represents 40 percent of home sales.

(Source: NJ Star Ledger)