tax-credit

It feels like just yesterday we were posting one of our first blog articles about the implementation of a tax credit for new and existing home buyers.  Fast forward three months and we’re here to announce that the tax credit is officially coming to an end in less than a month.  Is there still time to latch on to the $6,500 tax credit available to existing home owners looking to make a change?  You bet.  But we’d advise you to seriously start looking.

There’s been a lot of speculation regarding wether or not consumers actually took advantage of the tax credit aimed at stimulating the housing market and the economy.  Cory Spielberg, Operating Partner at Upper End Properties seems to think it had a bit of an impact in the $100,000 to $300,000 home price range, but not as much activity in higher end homes.  “We’ve seen a lot of activity from first-time buyers looking to buy an affordable home.  For them, it was pretty much a no-brainer.  On the other hand however, the tax credit hasn’t created a substantial change in the upper end market. The main market positively affected was the 150,000 – 250,000 market.”

For some, the tax credit didn’t quite work out the way it was proposed.  Spielberg attributes that lack of high-end buyers to two circumstances.  1.  They weren’t able to qualify for the tax credit or 2.  The credit was not enough incentive for them to pack up and move.

For those looking to bite the bullet and make things happen before the tax credit ends in April, it might be a good idea to start looking.  You must have a contract signed by April 30th and closed by June 30th.  According to CNN Finance, buyers spend, on average, 12 weeks looking for a home.  This information, coupled with the fact that it often takes 30 days to close, makes it almost impossible to try and take advantage of the tax credit at this point.  For those of you who’ve missed this opportunity, stay alert for any extensions or options that may become available in the future.

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