Tax credit big factor for first-timers
Zillow survey: Extended credit would generate 334,000 sales
By Inman News, Friday, September 25, 2009.Nearly one in five prospective first-time homebuyers say an extension of the tax credit for first-time homebuyers would be the biggest factor in deciding whether to buy a home by the end of 2010, according to a survey by real estate listings and valuation site Zillow.com.
Asked if an extension of the tax credit would influence their plans, 18 percent called the credit the "primary influence" in their decision, 25 percent said it would be a "significant influence," and 27 percent said the credit would have "some" influence on any homebuying decision. Only 31 percent said it would have no influence on their decision.
Zillow said the survey's results imply that an extension of the tax credit through Nov. 30, 2010, could generate 334,000 additional home sales.
An estimated 1.4 million homebuyers have claimed the existing tax credit, and the National Association of Realtors claims 350,000 would not have purchased a home otherwise.
Extending the credit is controversial, because of the cost to taxpayers. Congress allocated $13.6 billion for the current tax credit, expecting 2 million buyers would claim it before it expires Nov. 30. ...CONTINUED
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Submitted by Robert A. Hulme on September 25, 2009 - 4:26am.
I don't understand why any first-time home buyer would not say at least significant in this survey.
www.UtahCountyHomes.ws
www.UtahCountyRealEstate.us
Submitted by Gregory Schreiber on September 25, 2009 - 5:58am.
If it is so important to them, why haven't they bought anything yet??????
Submitted by Cheryl Cummings on September 25, 2009 - 6:57am.
Why aren't they buying you ask? 1st time homebuyers are scrambling to buy before the credit expires! REOs and short sales are over 40% of our market right now. Short sales take 3-6 months and many buyers can't wait that long or give up after a few months. REOs (bank owned) are sold 'as is' and there are so many buyers vying for the same property it is hard to get a piece of the action. Lenders aren't lending like they used to and are raising the min credit scores above what 1st timers can qualify for. It would be a huge stimulus to the market to have this tax credit extended.