A nationwide tax credit for homebuyers didn’t help Hidalgo County home sellers in the past two months. The number of homes sold dropped by nearly 15 percent in September and October this year compared to last year, said Dick Henry, president of the Greater McAllen Association of Realtors.

The credit — up to $8,000 for first-time homeowners — did little to spark sales in Hidalgo County.

While monthly sales of homes are still below last year’s levels, they’re not near the bottom of November 2008. The number of homes sold that month fell to 103, the lowest level since 2001.

After November, sales generally increased again, ultimately leveling off in March 2009, suggesting the market had found stable footing. That lasted until August, when sales began to fall again and foreclosures surged.

Now, while 10 percent of the homes listed for sale have been repossessed by the lender, those homes represent 40 percent of all sales.

Consequently, the median price of homes that have been sold fell by $2,600 in October. Henry said the cheap deals for foreclosed homes are having a chilling effect on surrounding properties, driving down overall home values.