The $8000 tax credit is over…Did it work??? The proof is in the Housing Statistics…..
It is over, the Government gift for all of you first time homebuyers as we know it, has come to an end. Did you take advantage of it? Did you miss out? I am curious to know if those of you that did take advantage are putting the money in the stock market, your home, or in the vacation fund. If you were wondering like I was, will this $8000 tax credit really work? The resounding answer in the very short term is YES. If you look at the numbers, Saint Louis home sales soared nearly 22% in March, 2010. Now some of this also has to do with record low interest rates, but even on the national level, homes sales were up 16.1% in March. You may have noticed I used the word short term effect. I believe the question we have to ask is, now what???? Rates will most likely be on the rise, the tax credit is through its April 30th date, and we are all wondering what are we in for these next couple of years. Now I am no “economist”, so I will not be providing forward looking statements. However, I will tell you that I am encouraged by what I have seen in April and heading in to May. A bit less inventory, more people out looking at homes, and rates still near historical lows.
3 Responses
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@ 1:29 pm
It most likely just pulled demand forward and artificially increased housing prices. It also will likely contribute to future foreclosures as buyers continue the moral hazard of having “no skin in the game”.
@ 2:08 pm
We did receive the $8,000 tax credit and actually took that into account when looking a homes. Our house has an unfinished basement but we were ok with that knowing we’d be receiving money from the government. Now that we actually have received the credit, we are moving forward with the renovation. We figured that since we received the money for buying the house, we should put the money back into the house.
@ 3:05 pm
Yes it worked. The deals a lower but the buyers are happy. I believe we need to all settle down an keep working. If the market begins to tank again I believe there will be something done to restimulate again. With rates as low as they are and the rpices on single family homes where they are it is still a tremendous time to buy a home. If you are not planning to stay in a house for 3 yrs or more you shouldn’t be buying anyway. Think about it..truly prices had gotten a little out of wack, hadn’t they?!!!!