HOME SALES SINK ALONG WITH PRICES

Yet another hammer pounded down on moribund home sales yesterday – setting the stage for one of the best springtime fire sales seen in years.

A report by the National Association of Realtors said sales of existing homes dived unexpectedly in January by 5.3 percent to their lowest level in 12 years.

Analysts had expected a jump as a result of December’s buying surge for bargain-priced homes.

However, buyers are putting purchase plans on hold to await further price drops and cash in on new perks that President Barack Obama might offer to spur the sagging housing industry.

One such perk was announced yesterday by the Internal Revenue Service, which will give married, first-time buyers a permanent $8,000 tax credit if they buy a home this year.

Treasury Secretary Tim Geithner said the tax credit “gives money to taxpayers when they need it most” and should provide an “immediate response to the current crisis.”

The industry report yesterday said the median sales price in January fell 14.8 percent to $170,300 from $199,800 a year earlier.