There were 549 closed sales in December in Albany, Rensselaer, Saratoga and Schenectady counties, an eight percent increase over the same month a year earlier, according to the Greater Capital Association of Realtors Inc. Prices in most areas were flat or down slightly, continuing a year-long trend.

The numbers relieved fears that the solid statistics from November were boosted only by the federal tax credit for new homebuyers. That credit, offering up to an $8,000 rebate, was originally scheduled to expire at the end of November, leading some in the housing industry to speculate that home sales were artificially boosted -- and would collapse in December.

But with the tax credit extended and expanded, the fall didn't come to pass, at least locally.: "The local market has begun a move to a more balanced market," said James Ader, chief executive at GCAR. "But it still remains a buyer's market."

The Capital Region numbers are not in line with nationally statistics released today, which show that December sales of existing homes crash by 17% the largest drop in more than 40 years.