Last year, the number of area of homes being built and sold dropped in response to the national housing woes.

The average number of homes built in the "Bowling Green area" is a couple hundred annually.

However, last year that number plummeted to only about 75.

So with a strong showing of houses being built and sold so far this year, it looks like our area could be coming out of the housing crunch soon.

"As we're coming off the snow days we're seeing the phones ringing, more listings out there, more things going on in the market," says Lonnie Gann.

Its great news for realtors like Gann, a steadily improving housing market, rather than a rapidly deteriorating one.

The Crye-Leike realtor says sales of homes are already up from 218 to 235 over last year's first quarter.

"Right now, we're seeing a lot of interest, a lot of phone calls, and activity to the very point of the tax credit."

"A lot of it has to do with the people wanting to take advantage of the tax credits that's available," agrees Brent Wimpee.

The first time homeowner's $8,000 tax credit and a another credit for long-time homeowners is also creating more buzz for home-builders like Wimpee.

"We're definitely seeing much more interest. Getting a whole lot more leads coming through since after the first of the year."

Wimpee says most people are building smaller homes than they were a few years ago.

Right now, he has 4 projects under construction with one soon to start.

"It makes you feel real good. Last year you might have enough work for a month or two. But this year, you get projects that are going to last over half the year," says Wimpee.

Warmer temps are coming just around the corner, so realtors and builders expect the housing market in South Central Kentucky to heat up as well.

"As the weather improves... so does the traffic," says Gann.

If you're looking to take advantage of these tax breaks there is still time.

The final day to sign a contract to "build or buy" a home and receive the breaks is April 30th.

The final date to close on that home is June 30th.