TAMPA - Just as the market was stabilizing, home prices took an unexpected plunge in January as lenders unloaded foreclosed homes at rock-bottom prices.

The median price of single-family existing homes in the Tampa-St. Petersburg-Clearwater metropolitan area fell to $125,600 in January, according to Florida Realtors. That's an 11 percent drop from December but a 3 percent increase from a year ago when the median price was $122,400.

In the past year, home prices generally have increased month-to-month and have hovered in the high $130s for the past several months. The average median price for the year was $137,500.

"We shouldn't freak out about this," said Mike Larson, a real estate analyst with Weiss Research in Jupiter. "We're pretty close to a price bottom - if we're not there already."

Real estate experts attributed January's price decrease mainly to sales of bank-owned homes and short sales. Some lenders tried to rid their books of distressed sales at the end of the year. Those homes generally sell for less than typical properties. Contracts signed late in the year closed in January.

Sales fell off, too, compared with a robust December. There were 1,603 sales in January in the Tampa-St. Petersburg-Clearwater area. That's up 2 percent from 1,573 in January 2009 but down from the 2,123 home sales in December.

Real estate agents have reported an increase in buyers looking to close on a home before the federal tax credit expires April 30. Contracts signed now won't show up in the data until they close a couple of months later.

Vernon Taylor, president of the Greater Tampa Association of Realtors, said his group is trying to figure out why prices dropped so much from December but thinks it was because of distressed sales.

"This knocks your feet out from under you a little bit," he said.

He said he doesn't think the drop will continue because demand is up as buyers try to find a home in time to take advantage of the tax credit.

Taylor said potential sellers also are showing an interest in selling to take advantage of the tax credit, too.

First-time homebuyers are eligible for a tax credit of up to $8,000; other buyers can get a credit of up to $6,500.

"We're seeing more inquiries and serious questions from people wanting to sell their homes and buy another one," he said.

Price drops did wonders for the Tampa area condo market, with an 85 percent increase in sales. There were 574 sales in January, with a median price of $100,000. That's down 8 percent from a year ago.

The state saw 10,465 sales in January, up 24 percent from the year-ago number but down from 14,630 in December. Home prices slid 6 percent to a median price of $130,900.

The National Association of Realtors said U.S. home sales fell 7.2 percent to a seasonally adjusted annual rate of 5.05 million.

The median price nationwide was $164,700, unchanged from a year earlier and down about 3 percent from December.

Information from The Associated Press was used in this report.