According to a Zillow survey, many prospective first-time home buyers say that extending the $8,000 federal tax credit will heavily influence their decision to buy a home before the end of 2010. This would make up an additional 334,000 buyers between December 2009 and next year; 2010, if it is extended.
In the survey Zillow did, they queried adults who would qualify as first-time home buyers. They asked them if their plans to buy a home before the end of 2010 would be influenced if the federal tax credit was extended. 18% said yes, it would be their primary influence, 25% said it would be a significant influence, 27% said it would have some influence on their home buying decision and 31 % said it wouldn't have any influence on their decision at all.
In Zillow's analysis of the current real estate market trends, it shows that, if the credit were extended and everyone took advantage of the full $8,000, there could be up to $14.86 billion dished out. The suggested 334,000 additional homebuyers that could be seen if the credit is extended could mean the difference between a healthy annual increase in home sales for next year and a negative home sales year.
Not many will disagree that extending the tax credit will boost demand at the margin. It can even help to make it easier to work down the high inventory levels the real estate market currently has of existing homes. The $8,000 first-time buyer federal tax credit is going to expire on November 30, 2009, which is very close. Those who qualify are buyers who do not currently own any property or have not owned any property for the past three years as a primary residence. So, don't miss out just in-case the credit is not extended.
Just Call Realtor® Liz Miller For All Your Lake Havasu City Real Estate Needs.
These are interesting statistics. I find it a bit disconcerting that 18% of people state that it is their primary motivation though. People should not buy a primary home simply because they are trying to make quick money. If they do, there is going to be a rude awakening. Home ownership provides comfort, security, and a host of other positive benefits to individuals and families. However, it is also a responsibility. The $8000 can help ease that burden and is/was a great program to reduce risk for buyers. However, anyone who lists this as their primary purchase factor hasn't thought everything through.
Liz - I will be interested to see if they extend the tax credit. I sincerely wish that they had included non first-time buyers in this initiative, as that could make a real impact on the housing market. I was surprised at how little excitement the current credit seemed to generate.
What makes anyone think they won't extend the credit and give even more of our taxpayer money away? That is what government does best. Let's see, 300,000 people times $8,000, what is another couple billion on the deficit anyway? The reason it is for only first time buyers is of course, the fact that everyone would take advantage if it wasn't. One would just buy a house from their brother or friend, and their brother would buy theirs with an agreement to trade back in three years. Duh, talk about bankrupting the country.