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October 22nd, 2009 8:51 AM by David W. Welch
You can go to my webpage www.DavidWelch.com/taxcredit to keep an eye on the countdown clock for the tax credit. Keep in mind, this countdown is until closing. You must close your transaction by November 30, 2009 to be eligible for the tax credit. We are finding that a lot of transactions are being delayed, so I do not recommend setting a closing for the last day of the tax credit. That also happens to be right after the Thanksgiving holiday. If you are writing a contract today, push to close before Thanksgiving or you may miss the credit completely. Surveys seem to indicate that only about 15% of first time home buyers say the credit was a primary influence on their decision to purchase. The first time buyers that I have been working with agree with that sentiment.
Considering this, why would the government consider extending the credit. First time buyers probably make up less than half the buyers, so the credit is probably accounting for fewer than 8% of the sales. Here in Orlando sales are up nearly 50%, so the credit while appreciated, is not really doing much to stimulate additional sales. Low prices and low interest rates have much more to do with the increased demand in Orlando. The banks cannot get all the sales closed anyway with pending contracts rising to more than 9,100 here in the City Beautiful. In stead of extending the credit, let it expire and see what happens with demand for homes. If we actually see an appreciable drop as some speculate, then maybe the credit should be reconsidered.
On a side note, reports suggest that real estate and manufacturing are leading the country out of the recession. The two hardest hit segments of the economy are doing the most to turn things around. Go Real Estate!!!
Orlando Real Estate, David Welch Real Estate Optimist