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Sandy Slinkard

TAX CREDIT EXTENSION COULD SWAY BUYERS


Daily Real Estate News  |  September 24, 2009  |   addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share
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At least 43 percent of potential first-time home buyers told Zillow.com that extending the $8,000 federal tax credit would go a long way toward motivating them to buy a home in 2010,

Nearly 18 percent called the credit the "primary influence" in their decision; 25 percent said it would be a "significant influence;" 27 percent said the credit would have "some" influence on any homebuying decision; and 31 percent said it would have no influence.

If the 18 percent of those who called the credit a primary influence ultimately bought a home, that would equate to 334,000 buyers from Dec. 1, 2009, to Nov. 30, 2010, and would cost taxpayers $14.86 billion, the online real estate marketing firm calculated.

Zillow also noted that based on its survey, about 80 percent of first-time home buyers in the coming year will buy whether there is a credit or not, but it argues that expanding the credit is worthwhile.

“While 334,000 may seem like a small number relative to the total number of home buyers 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,” Zillow Chief Economist Stan Humphries says.

Source: Zillow.com (09/24/2009)
Published Friday, September 25, 2009 7:16 AM by Sandy Slinkard

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