US Homebuilder Sentiment Drops in October as First Time Home Buyer Tax Credit Expires
Posted on | October 19, 2009 | 1 Comment
The US homebuilder sentiment dropped in October as the first time home buyer tax credit gets closer to expiration on November 30th, 2009. Homebuilder sentiment had been up for three straight months but with government incentives set to expire sentiment turned south. The National Association of Homebuilders/Wells Fargo Housing Market Index dropped from 19 to 18 which is well below the expectations of 20.
The pullback is likely to be directly related to the fact the the first time home buyers $8000 tax credit is expected to expire on November 30th. The expiration date is for a home to be closed on and if you start the home buying process today it would be almost impossible to close on a home by this expiration date.
The first time buyers tax credit has been attributed as one of the major factors fueling the recovery in the housing market. The housing market top took place in July of 2006 and there was a steady decline until this summer. When the tax credit was offered there was a swell of interest in buying a home for first time buyers and this helped to stabilize home prices for the time being.
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Author: Jeremy North
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October 20th, 2009 @ 8:06 am
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