Sales of existing homes in the state rose 5.8 percent in the third quarter compared with the same period a year ago, the first increase since the recession began in the fourth quarter of 2007, the Wisconsin Realtors Association said Tuesday.

In La Crosse County, 327 homes were sold in the third quarter, up

6.5 percent from 307 in the third quarter of 2008, the association said.

Median sale prices in Wisconsin dropped 6.3 percent from a year ago to $148,000 in the third quarter, while the median price in La Crosse County dropped 2.7 percent to $141,700, the association said. Much of the decline was due to robust sales of starter homes fueled by the federal first-time home buyer tax credit program, WRA President William Malkasian said.

The tax credit was a major reason why third-quarter sales increased in La Crosse County, said Steve Lillestrand, president of the La Crosse Area Realtors Association.

Lillestrand noted Congress not only has extended the tax credit of up to $8,000 for first-time home buyers through next April, but expanded it. With the expansion, current homeowners are eligible for a tax credit of up to $6,500 through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight. There are income limits.

"I think we'll see some real positive effects" from what Congress did, Lille-strand said. "I anticipate sales to remain strong straight through the spring."