When the bottom falls out of the real estate market, it has nowhere to go but up.

Home sales in Coos County were up more than 60 percent in October, totaling 71 closed sales, compared to a year ago, according to the latest report from the Regional Multiple Listing Service.

The big motivator for folks to buy is the $8,000 federal tax incentive offered to first-time homebuyers. Thinking the deal was going to expire at the end of this month, prospective homeowners apparently rushed to take advantage. Congress recently agreed to push the deadline to buy to June 30.

With homes priced to sell, modest interest rates and a generous tax break to new buyers, a steep uptick shouldn’t be a surprise, said Tim Duy, director of the Oregon Economic Forum at the University of Oregon.

Investors, too, are contributing to the surge. Now is the time to buy up cheap homes and turn them over to renters, Duy said.

“This has really boosted the lower end of the market,” Duy said.

Ray Penny, owner of All State Real Estate in Coos Bay, chalks the sales pickup to an over-inventoried market.

“The major influence is that there is a lot of inventory” and the pressure is bringing down the price, he said. “There are a lot of bargains out there.”

Average sale price was $179,100 — down more than 7 percent from a year ago.

Pending sales last month also were up nearly 65 percent and new listings increased 28 percent.

Last month in Curry County, pending sales jumped nearly 87 percent, and closed sales spiked 10 percent. The average sale price was $336,600 — up almost 6 percent.

While the news comes as welcome relief to Realtors, Duy cautions that fast rising sales do not equal long-term stability. The culmination of factors may have front loaded the market in recent months and that it’s possible another slowdown may follow.

“We’ll see what happens this month going forward,” he said.

(Staff Writer Nate Traylor covers business news for The World. He can be reached by calling 269-1222, ext. 236; or by e-mailing to ntraylor@theworldlink.com.)