Many are crediting the new homebuyers' tax credit and its impending expiration deadline for a surge in home sales last month.

Members of Northwest Multiple Listing Service reported a 63 percent jump in pending sales during October compared to the same month a year ago. Every county except Okanogan reported double-digit gains in pending sales.

Pierce County had 1,174 pending sales, Thurston 295, Mason 70 and Lewis County had 75 pending transactions.

The new figures show continued signs of some stability in the market and improving consumer confidence. Inventory is at its lowest level since December 2008 and the year-over-year price decline at 7.2 percent area-wide is the smallest drop since June 2008.

For the four-county Puget Sound area (Pierce, King, Snohomish and Kitsap), inventory has shrunk 20 percent over 12 months ago. The selection of single family homes (excluding condominiums) in the four-county area is down 22 percent.

"I believe the $8,000 homebuyer credit set off a great chain reaction. The first-time homebuyer creates a move-up buyer," explained MLS director Meribeth Hutchings, the broker/owner of Windermere Real Estate/Lake Stevens.