Last month Alabama saw a 13 percent increase in home sales compared to October of 2008. The numbers are from the Alabama Center For Real Estate.

"Sales are picking up, buyers are out there, and it's a buyer's demand," says James Grant of James Grant Realty.

In September, home sales in Alabama declined seven percent compared to September 2008 but October’s numbers went up.

Last month's increase is the first time since July 2007 that the state has seen a year-over-year increase in homes.

"Dothan has historically had a good market. We have not suffered as severely as other parts of the country have," said Evelyn Thornton of Coldwell Banker, Alfred Saliba Realty.

But what sets Dothan apart from other cities?

Low property taxes are a plus especially when you add that to the first time home buyer's tax credit which has been extended to May 1, 2010.

"If you are a new home buyer, you can get up to $8,000 tax credit, if you have owned an existing home for 5 out of the last 8 years, you can get $6500 tax credit," said Grant.

Currently some homes are selling faster than others.

Realtors say brick houses that have three bedrooms and two baths are commonly marketable properties.

"Houses fewer than 200 thousand dollars in price have marketed more quickly than the 2 to 550 range," says Thornton.

But there are homes up for sale of all prices and sizes.

Experts say if you are selling or buying in Dothan Chances are you will come out successful.

"You have over one thousand listings, interest rates are good and there are a lot of great things out there, it is a great time to buy,” says Grant.

Though there will be some activity around the holidays, realtors expect business to get busy right after Christmas into the New Year. They say springtime is always busy.

Experts say commercial land and property are difficult to sell lately because those who want to open a new business or build a development are having a difficult time getting loans approved.