December was the fourth month in a row that homes sales rose in the Tampa Bay area. You don't have to look hard for reasons why. Foreclosure homes are depressing prices while stimulating sales.

From December 2007 to December 2008, sales here rose 16 percent from 1,597 to 1,857. Median sales prices went in the opposite direction. Year over year they plunged 27 percent from $199,800 to $145,700.

The December sales picture across Florida was similar: Sales up 27 percent, prices down 27 percent. Sales rose in 16 of 20 Florida housing markets. Gainesville, Tallahassee, Pensacola and Punta Gorda were the down markets.

“Sales are rising in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” said Lawrence Yun, chief economist with the National Association of Realtors.

The Florida Association of Realtors also wrapped up its yearly sales reports. In the Tampa Bay area, sales were down 3 percent overall in 2008. Prices were down 19 percent from 2007 to 2008.

The December to December price plunge in Tampa is pretty shocking at 27 percent. But you should temper the pessimism. Aside from the foreclosure sales, which are necessarily discounted, people are buying smaller homes. Measured in price per square foot, the decline is not that steep.

Charts broken down by Florida metro areas are here: Download fardec08.pdf and Download faryearend08.pdf