Home sales in the Mid-Columbia dropped about 22 percent during the first quarter of 2008 compared with same period last year, according to Multiple Listing Service figures.

Area real estate agents blame continual bad news about the national economy and real estate market and a long winter with several weeks of snow and ice.

"That number says to me that there's two factors here in the market we're seeing," said Vicki Monteagudo, a Realtor with Coldwell Banker Tomlinson Associated Brokers in Kennewick.

Home sales dropped from 769 in the first quarter of 2007 to 600 during the same period this year.

That 22 percent drop in home sales reflects first quarter sales reported to the MLS as of Wednesday, so it varies from what Realtors report.

According to the Tri-City Association of Realtors, which pulls numbers on the first of every month, home sales dropped about 29 percent, from 773 in the first quarter of 2007 to 552 this year.

"We're fairly insulated here but (people) are wondering if all this bad news is somehow going to ripple and spill over to us," said Bill Prussing, 2008 president of the Tri-City Association of Realtors.

Rising gas and grocery prices and other economic woes have damaged consumer confidence, he said, which puts the brakes on making big purchases.

Dave Retter, designated broker and co-owner of Windermere Tri-Cities in Kennewick, said he's not concerned about the downturn because there isn't a glut of homes for sale.

"I would be worried for our market right now if inventory levels were jumping," he said.

As of April 1, there were 1,344 homes listed, compared with 1,310 in March 2007 and 1,409 in March 2006. Mid-Columbia homes priced less than $350,000 are on the market for an average of 90 days, according to the MLS.

Though sales are down, prices continue to rise. The median price averaged $168,300 during the first quarter of 2008, up from $166,500 in the same time last year.

Building permits for new homes were almost even with 2007.

The Home Builders Association of Tri-Cities reported 335 new home permits through March 31, compared with 337 during the same time last year.

West Richland saw the biggest jump: A 71 percent increase from 21 to 36 permits issued during the first quarters of 2007 and 2008, respectively.

"(Builders) aren't hurting for work," said Renee Brooks, director of government affairs and communications for the association, adding that the current pace is more manageable than during the building boom a few years ago.

A "wait-and-see" attitude about the housing market isn't a surprise to Dean Schau, regional labor economist, given the national economy.

But the local economy is strong, he said, as work continues at the vitrification plant at Hanford, hospitals are expanding, the wine industry grows and hiring continues at Coyote Ridge Corrections Center in Connell.

"The economy here is likely to do really fine unless someone does something to the Hanford budget," Schau said.

Retter said the three major contracts that are up for bid at Hanford also cause some hesitancy in the housing market.

Interest rates continue to remain low, and Schau said he doesn't anticipate they'll rise much in the next three to six months.

The Mortgage Bankers Association reported the rate for a 30-year fixed mortgage was 6.01 percent for the week ending April 25.

Local housing inventory has changed during the last year, with fewer homes on the market in the price range below $250,000.

As of Wednesday there were 942 homes listed that were priced at or below $250,000, an 11 percent drop from the same time last year.

Angie Mykel, a buyer's agent with Coldwell Banker Tomlinson Associated Brokers, said she isn't sure of the reason for the shift, but the national credit crunch has tightened the pool of eligible buyers.

"With 100 percent financing going away, that's going to have an impact on the first-time buyer market," she said, which affects the market as a whole.

As an agent who represents buyers, Mykel said many of her clients are looking for homes with open floor plans, or the great room concept. Because families lead busy lives, they want a place to gather at the end of the day, she said.

Town homes also are popular, she said.

That's held true at Willow Pointe in North Richland, said Mike Mortimer, CEO of Bellevue-based Abner Group, which owns Willow Pointe Development LLC.

Interest in the development, which is all town homes, slowed some during the first quarter, he said, but the positive job market is a good sign.

"We're fairly encouraged. We've got real estate across the state and we feel like the Richland market is more stable than other markets in the Northwest," he said.

While some people may be holding off on buying or selling a home right now, Prussing said he thinks positive economic news could turn that around.

"There's a lot of positives around here but I think people around here are concerned," he said. "I really believe that if the economic news were to get better then all of a sudden this could change. The question is how long's it going to take?"