Statistics On The Homebuyer Tax Credit
According to the article below from The Wall Street Journal, almost 400,000 sales are attributable to the first-time homebuyer tax credit. Yes this is good news but this has also taken away from future demand. “But before anyone breaks out the champagne, Mr. Zandi says that pop is likely to fizzle later this year, when the tax credit is due to expire. Why? Because some of that 400,000 increase is simply stolen from future demand. That is, someone who might have been planning to buy a home in the next couple of years likely decided instead to buy now so they could take advantage of the tax credit before it expires in December 2009.”
So where am I going with this? This is all the more reason to extend the tax credit past November 30th but don’t announce it until the middle of November and only extend in 2 or 3 month increments. If you extend it for a full year borrowers will sit back and relax and wait until the last minute.