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First Time Home Buyers Tax Credit Extension Increases Home Sales

Posted on | November 23, 2009 | No Comments

Today we learned that the first time home buyers tax credit extension has greatly helped the housing market.  Sales of United States homes rose at the highest pace we have seen in two and a half years.  The National Association of Realtors stated that sales increased a record 10.1% month over month.  The numbers greatly exceeded analysts expectations.

The popular first time home buyer tax credit extension could be one of the major reasons that we saw this increase.  The numbers from October are likely to be affected because many first time buyers were rushing to beat the deadline for closing on November 30th.  We may see sales increase in a similar fashion for November as first time home buyers will continue to get the tax credit through April 30th, 2010.

There is very little argument that the first time home buyer tax credit has helped to support the recovery in the housing market.  The $8000 first time home buyer tax credit has likely put the bottom in the housing market and we are starting to see home prices start to increase in most major metropolitan areas.  This is likely to continue as the tax credit has been expanded to move up buyers as well as they can receive a $6500 tax credit.

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Author: Mike Garner

Category: Current News

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