Area homes sales fell 4 percent in September while climbing nationally by 9.4 percent, the largest amount in more than 26 years.

The National Association of Realtors is crediting the $8,000 tax credit for first-time homebuyers with the 9.4 percent jump in house sales, but Chattanooga Association of Realtors President Nickie Schwartzkopf said the disparity between local and national figures rests in the Southeast Tennessee and Northwest Georgia region's recent immunity to large swings in the market.

"We never had the big upturn and downturn that everyone else had," she said. "We've been very fortunate in that regard."

Last month, 507 residential units sold in Southeast Tennessee and Northwest Georgia, down from the 528 sold in August and a more than 12 percent slide from the 578 sales in July.

Ms. Schwartzkopf urged potential homebuyers in the area to act quickly if they are to take advantage of the first-time tax credit set to expire Nov. 30.

"Because it is generally taking 60 days to close on a home after a contract is offered, buyers have little time remaining to act to complete a purchase by the Nov. 30 deadline," Ms. Schwartzkopf said.

U.S. Sen. Johnny Isakson, R-Ga., introduced legislation last week that would extend the tax credit and expand it to include most house buyers based on his belief that the measure has created about 350,000 sales that would not have happened otherwise.

Lawrence Yun, chief economist with the National Association of Realtors, said the tax credit should continue to ensure a housing market rebound.

"The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions," he said.

While many, including Senate Banking Committee Chairman Chris Dodd, D-Conn., believe the tax break will be extended, concerns arose this week that some of the 1.5 million applications for the tax credit are fraudulent.

At a hearing on Thursday the Treasury Department's inspector general for taxes questioned the legitimacy of some 100,000 claims for the credit, potentially including some illegal immigrants and 580 people under 18. The youngest taxpayers to apply for the credit were 4 years old.

In addition to fewer houses being sold locally, the Chattanooga Association of Realtors states that houses are staying on the market about a week longer than they did a year ago.

The average selling price has dropped from $169,137 in September 2008 to $150, 254 last month. The median price has fallen from $138,500 a year ago to $129,000 last month.

The Associated Press contributed to this report.