First Time Home Buyer Tax Credit Extension Could Grow Home Sales
Posted on | September 25, 2009 | 7 Comments
An extention of the first time home buyers tax credit could potentially grow home sales by 20% or 334,000 says Zillow. The survey found that if the tax credit were extended 18% said that the $8000 tax credit would be the primary reason while 25% said it would be a significant reason. Another 27% claimed that the tax credit would have some influence on their decision to buy a new home. Approximately 31% said it would have no influence at all.
“These numbers suggest that extending the credit might bring an additional 334,000 homebuyers who would not otherwise purchase a home into the market,” Zillow Chief Economist Stan Humphries said. “While 334,000 may seem like a small number relative to the total number of homebuyers who would claim the credit, their addition to the market next year could make the difference between a robust annual increase in home sales next year and a flat or negative change in home sales relative to this year.”
The $8000 tax credit is set to expire on November 30th. The closing must be completed by this time which makes it very difficult to take advantage of this extra money if you start the home buying process right now. Stay tuned to Subprime Blogger to get the latest information on the extension of the first time home buyers tax credit.
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Author: Tiffany Mann
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7 Responses to “First Time Home Buyer Tax Credit Extension Could Grow Home Sales”
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September 27th, 2009 @ 7:21 am
all this tax credit is doing is giving realtors a reason to keep prices out of touch with working class america. I personally do not want to see it extended and let real estate prices slide down to affordable levels then the people will buy a home… when they can afford the mortgage payments.
September 27th, 2009 @ 7:05 pm
I think that it SHOULD be extended. My husband and I have been trying very VERY hard to sell our starter home so we can move for a job relocation. We have had very little luck, especially b/c of financing for others. We have lowered our home so much that we will actually owe the mortgage company so we can sell it. I think prices are where they need to be if not lower than where they should be. PLEASE EXTEND THE CREDIT!!
September 28th, 2009 @ 5:22 am
Realtors don’t keep prices up, they are more than happy to convince sellers to lower the price. They want to close and get paid. Sellers lack of equity if the number one factor keeping the price up. If they can’t afford to sell at market price then they won’t, uless, of course they have to because of a relocation, unemployment, etc.
September 28th, 2009 @ 8:18 am
I’m in the same situation as Megan, trying to sell my starter home. But I don’t want the tax credit extended. Let November be the last crush of home sales, and hopefully mine will sell sooner rather than later. I just dropped the price $20,000 to hope it snares someone rushing to get in before the deadline.
September 28th, 2009 @ 12:41 pm
PLEASE EXTEND THE TAX CREDIT….WE HAVE TRIED SO HARD…AND FINALLY FOUND LAND THAT PERKS…LAND OWNERS SHOULD HAVE TO PERK LAND BEFORE PUTTING IT ON THE MARKET….SEVERAL LIES ABOUT THE PROPERTY AND IT’S SO CALLED PERK…PLEASE EXTEND…ITS NOT ONLY FOR THE REALTORS…ITS FOR FOLKS LIKE US…WE WOULD HAVE MET THE DEAD-LINE, BUT IT’S GONNA BE VERY CLOSE….PLEASE.. PLEASE EXTEND….GIVE US A CHANCE AS WELL….FIRST TIME HOME BUYERS, AND MIDDLE CLASS NEED A BREAK AS WELL AS THE RICH WHOM OWN ALREADY…THANKS FOR ALL
October 1st, 2009 @ 1:32 am
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October 1st, 2009 @ 10:26 am
Interesting. Personally, it reminds me of all those old QB’s who can’t retire but know that it’s best for everyone in the long run if they do (Favre). We’re actually talking about this over at http://www.myonlinedebtsolutions.com if anyone wants to join the discussion.