According to a report from the Internal Revenue Service (IRS), more than 1.4 million Americans have already claimed the new tax credit for first-time home buyers. The credit, which applies to sales closed between January and December 1, 2009, is good for 10% of the price of a home, up to $8,000, and it’s available to anyone who has not owned a home for three consecutive years prior to purchase. To qualify, buyers must be purchasing a primary residence, and couples can earn no more than $150,000, while individuals must make less than $75,000. Unlike the $7,500 first-time homebuyer tax credit that could be applied to sales made between April 2008 and July 1 2009, this refund actually puts money in consumers' pockets. Because much of the recent uptick in home sales has been attributed to this tax credit, housing industry advocates worry that the market could quickly turn down again after the credit expires. That's why housing industry participants are pushing Congress to keep the tax credit in place. "Just like the Cash-for-Clunkers program, there could be a hangover effect," said Mike Larson, a real estate analyst for Weiss Research. 1.8 million people are expected to participate in the program by the time it lapses and the National Association of Realtors (NAR) estimates that it will result in an extra 350,000 sales. The National Association of Home Builders (NAHB) predicts a more conservative165,000 more home sales than would have occurred, but neither association wants that momentum to slow. The trouble is, of course, is that the housing market, and indeed the entire economy is becoming increasingly dependant on government lifelines. What happens when those lifelines are withdrawn?
http://cli.gs/Dg1gHn
"Disclosure: We are a Compensated Affiliate of HSA"
Best regards
Martin Crawford
No comments:
Post a Comment