April 27, 2010
$8000 Buyers Tax Credit Is Expiring
On April 30th, with a couple of exceptions for those who have served overseas in 2009 (military and civil service), the $8000 Buyers Tax Credit will expire for once and for all. This has been a boon to the real estate market in terms of sales volume, with over 47% of all new homes sales being made by first time homebuyers utilizing the credit to buy a house.
What effect will the expiration of the Tax Credit have on home pricing?
Can you say “downward pressure?” In these last days of the tax credit I have been working with buyers who know that they have $8000 more to play with in terms of making an offer without affecting their bottom line. This has resulted in offers that are higher, and those higher offers will be off the table in four days. The result will be a weakening demand by first time home buyers, and that weakening demand will result in home prices in San Diego and other parts of the country declining for the time being.
If you happen to be in the military, then the $8000 Buyers’ Tax Credit will not expire for one more year, and if you fall into this category, please contact us now so that we can educate you about how to take advantage of this continuing benefit to our service men and women.