While home sales in both Tipton and Fayette counties took hits in the second quarter – down 11.9 percent and 6.4 percent, respectively, compared to the same period last year – each area also boasted improvements compared to the first quarter, which is promising for local experts.

Tipton County saw 155 home sales in Q2 (April to June), down from 176 home sales the same quarter a year ago, but an impressive 50.5 percent increase from 103 sales in Q1, according to the latest data from real estate information company Chandler Reports, www.chandlerreports.com.

Carmen Prince, affiliate broker with RE/MAX Right Way and 2011 president-elect of the local chapter of the Women’s Council of Realtors, is bullish on this year’s progress continuing forward.

“Of course, we all wish we had a crystal ball to see into the future, but all indications from economists show that the end third and fourth quarter of 2011 will continue to improve,” Prince said. “It will take some time to regain home values that was lost in the past few years. As the job market improves, so does the economy. People are less afraid of buying their dream home if there is stability back in their lives.”

Tipton County home sales averaged $118,414 in Q2, down 6.4 percent from $126,486 in 2010. Average price per square foot also took a hit, dropping 11.9 percent to $59 in 2011 from $67 in 2010.

Average square footage, however, increased 9.1 percent to 1,950 from 1,788 in 2010.

But last quarter’s price dip has a silver lining, Prince said. With interest rates at record lows, people can actually afford more house for their money.

For example, rates in 2010 were around 5.5 percent compared to 4.25 percent today. That translates to a mortgage payment of $709.74 compared to a payment of $614.92, including principal and interest, for a mortgage of $125,000.

The price range with the most activity in Tipton County homes for Q2 was a tie between $50,000 to $99,999 and $100,000 to $149,000, with 41 sales each. Those price ranges were also the most active during the same quarter last year, correspondingly reaching 33 and 57 sales.

Atoka’s 38004 was Tipton County’s leading ZIP code in nearly all categories (number of sales, price and square footage) last quarter, producing 37 sales averaging 2,332 square feet and $153,373. Stanton’s 38069 ZIP saw the highest price per square foot at $88.

Atoka’s high housing volume, coupled with a growing business climate, makes it ideal for homebuyers, Prince said.

“More subdivisions have been developed over the past 10 years in Atoka than any other city in the county,” she said. “Businesses are moving into the area, which bring jobs and tax dollars for the city.”

Meanwhile, Fayette County saw 131 home sales last quarter, a 6.4 percent dip from 140 in Q2 2010, but a 19 percent improvement from Q1.

Jeanna Groome, principal broker of Groome & Co. Realtors, said the remainder of 2011 will likely prove to be more of the same.

“It’s probably going to stay fairly level,” Groome said. “Interest rates are great, but there’s just not a tremendous amount of activity that I’m seeing in Fayette County.”

Home sales in Fayette County averaged $208,292, up 9.2 percent from $190,684 in Q2 2010, something Groome attributes to the market cleansing itself of foreclosures.

“Last year, there were more bank-owned properties,” she said. “We’re also seeing resurgence in single-family, traditional re-sales and new construction picking up.”

Average size jumped 14.2 percent to 2,483 square feet last quarter from 2,175 square feet a year ago. Average price per square foot was basically unchanged to $86 per foot last quarter from $87 in Q2 2010.

The price range with the most activity last month in Fayette County was $100,000 to $149,999, with 33 sales. Q2 2010 also saw the most sales in this category.

Oakland’s 38060 ZIP code produced 62 sales – the most out of all 12 Fayette County ZIP codes – making up 47 percent of the county’s total sales.

Fayette County’s Piperton, which shares the 38017 ZIP code with Shelby County’s Collierville, topped Fayette for average size (3,555 square feet) and average price ($363,017). Hickory Withe’s 38002, which shares a ZIP code with Shelby County’s Arlington, notched the highest average price per square foot with $135.

Moving forward, Groome remains assured that Fayette’s appealing property taxes, coupled with U.S. Department of Agriculture’s Rural Housing loan program will pay dividends.

“It’s one of the only 100 percent financing loans still available,” she said. “If you qualify, you can get in for no money down. And that’s only applicable in your rural areas, which all of Fayette County qualifies.”

Chandler Reports is a division of The Daily News Publishing Co. Inc.