Local home sales increased by 22% February over January, when Realtors sold 1,125 last month, compared to 920 in the previous 30-day period.

Nationwide, seasonally-adjusted home sales climbed 5% last month over January.

The increase in home sales is partially attributed to a recently-enacted tax credit program.

Buyers now are able to enjoy a 10% federal income tax credit on home purchases through Nov. 30, 2009. President Obama signed the legislation into effect last month. It’s retroactive to homes bought since Jan. 1, 2009.

An Ohio sweetener, for the same group of buyers, is a mortgage credit certificate program that augments the Obama-signed legislation. The Ohio program offers a federal tax credit each year for the life of the owner-occupied home. The annual tax credit amount is based on a homeowner’s mortgage interest expense paid each year.

The federal program is a one-time tax credit. It provides the biggest lump-sum savings on your taxes, which can be applied to your 2008 or 2009 federal income tax return.

Nationwide, the new tax credit program is likely to boost home sales by 300,000 units from firsttime buyers in 2009, according to the National Association of Realtors. That will further trigger tradeup purchases.

In addition to the benefit from the tax credit program and trade-up buying, low mortgage rates for all home buyers could easily raise home sales nationwide by 850,000 in 2009.

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