New home sales in Greater Des Moines were up 36 percent in March compared with the previous month; however the number of home sales still remained below levels reached a year ago.

According to a report released today by the Des Moines Area Association of Realtors (DMAAR), 527 contracts for new home purchases were closed in March, up from 387 in February. In March 2008, 594 contracts for new home sales were closed.

The report also stated that the average sale price of a Greater Des Moines home in March was $147,329, which is down about 8 percent from February’s average of $160,375. In March 2008, a home in Greater Des Moines was selling for $12,000 more, at an average price of $159,451.

But despite the decrease in value, DMAAR President Kurt Schade remains optimistic.

“Realtors continue to report they’re selling more homes in the $100,000 to $200,000 range, which tells us the First-Time Homebuyer Credit is having an effect on the market,” he said. “It’s a great time to buy a home in the Des Moines area, especially if you’re a first-time home buyer with a good job and plans to stay in the area.”

An $8,000 tax credit, which doesn’t have to be repaid if the buyer stays in the home at least three years, is available for first-time home buyers until Dec. 1.

For more statistics and information about the Des Moines housing market, visit DMAAR’s Web site at www.buynowdsm.com.

.