Prescott Homes for Sale and the First Time Buyer Tax Credit
Prescott homes for sale on the real estate market are currently at some of the lowest prices in years. And yes, many of the deals are happening by first time buyers taking advantage of the tax credit.
The news from the National Association of Realtors® tells us that existing home sales continued to increase in October based upon a foundation of the consistent increase of home sales for the last seven months. Much of the credit given for this steady upward climb is the first-time buyer tax credit which is actually causing inventories to decline.
The sale of existing homes, which includes condos, townhomes and single-family homes jumped 10.1% to a seasonally adjusted annual rate of 6.1 million units in the month of October. This increased level of sales marks the highest level of homes sold since February 2007 when the 6.55 million mark was reached.
Prescott homes for sale and the first-time buyer tax credit.
It appears that the NAR cheif economist Lawrence Yun has been quite startled by this considerable gain of home sales. He accounts this surge by first time buyers who have been rushing to meet the deadline for the first-time buyer tax credit which is slated to end in November. He believes that this sales trend of homes being sold could very well continue through the month of November, however he mentioned that this dramatic set of real estate sales will dry out in December and through the early part of the next year until there’s another sharp increase of sales in spring and early summer.
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.