Home sales in central Ohio were up almost 17 percent in September making three consecutive months of home sale increases. According to the Columbus Board of REALTORS®, 1,719 homes sold in September which is 16.6 percent more than the previous year’s 1,474 sales.

In addition to the increase in sales, homes that were put in contract also increased by over 58 percent last month. Year-to-date home sales (January through September 2011) are still trailing 2010 by 3.7 percent.

“As home sales for the last three months have surpassed 2010, the year-to-date sales statistics continue to narrow the gap between this year and last year when the home buyer tax credits were in effect,” says Rick Benjamin, 2011 President of the Columbus Board of REALTORS®. “Although many agents are reporting increased activity, time will tell whether that activity translates into actual home sales.”

The median sale price for home sold during the month of September was $128,000, up from $127,500 in September 2010, but the median sale price is still 3.8 percent behind last year’s average for the months of January through September.

The month’s supply, a measure of inventory that estimates how many months it would take to sell the entire home inventory, fell 17.2 percent to 8.7 percent from 10.5 percent last year.

“A balanced market for central Ohio is around 6½ or 7 months supply,” said Benjamin. “So the decrease is one more positive sign for central Ohio housing.”

In early August, the IRS published 10 helpful tax hints for home sellers. If you are selling, or have recently sold, make sure you reap all of the tax benefits you can! May be a pleasant surprise for those who experience a gain in income from the sale and have lived in their home for a while.  The ten tips are below can be viewed on the IRS website: http://www.irs.gov/newsroom/content/0,,id=104608,00.html

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your main home.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.