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Where is the Federal First-Time Home Buyer Tax Credit Producing the Most Sales? You Guessed It - California, Florida and Texas

Via Ryan Shaughnessy, Broker/Attorney - Your Lafayette Square Real Estate Partner (PREA Signature Realty - www.preasignaturerealty.com):

FEDERAL FIRST TIME HOME BUYER TAX CREDIT USAGE (AS OF AUGUST, 2009)

Recently, there has been impassioned pleas from the HBA, NHBA, NAR and other trade organizations seeking the extension of the $8,000 Federal First-Time Home Buyer Tax Credit ("Federal Tax Credit").  Often, we receive questions as to how the Federal Tax Credit is impacting sales in the St. Louis area.  Although the statistics vary based on their source, the U.S. Treasury released its August report which indicates that three states - California, Florida and Texas - accounted for 72% of the sales transactions in the nation utilizing the Federal Tax Credit.  In Missouri, there has been a modest use of the tax credit with 6,615 closed sales transactions (or 5% of the total national closed sales transactions).

Here are the states with 6000 or more closed sales transactions using the Federal Tax Credit:

 

Here are the state by state breakdown of closed sales transactions using the Federal Tax Credit: 

State	# of Sales using Tax Credit	% of Total Sales using Tax Credit
Alabama	5046	2%
Alaska	485	0%
Arizona	9357	3%
Arkansas	3021	1%
California	42,304	13%
Colorado	6210	2%
Connecticut	2230	1%
Delaware	861	0%
District of Columbia	471	0%
Florida	29,132	9%
Georgia	11,109	4%
Hawaii	488	0%
Idaho	2457	1%
Illinois	9918	3%
Indiana	5866	2%
Iowa	3455	1%
Kansas	3147	1%
Kentucky	4105	1%
Louisiana	4353	1%
Maine	931	0%
Maryland	5022	2%
Massachusetts	4548	1%
Michigan	9237	3%
Minnesota	6964	2%
Mississippi	2949	1%
Missouri	6615	2%
Montana	1041	0%
Nebraska	2771	1%
Nevada	5259	2%
New Hampshire	1062	0%
New Jersey	5500	2%
New Mexico	1466	0%
New York	8076	3%
North Carolina	9355	3%
North Dakota	659	0%
Ohio	9172	3%
Oklahoma	4300	1%
Oregon	3565	1%
Pennsylvania	10,250	3%
Rhode Island	964	0%
South Carolina	4684	1%
South Dakota	886	0%
Tennessee	8549	3%
Texas	29,536	9%
Utah	4623	1%
Vermont	351	0%
Virginia	9093	3%
Washington	6229	2%
West Virginia	788	0%
Wisconsin	5202	2%
Wyoming	648	0%
zz - Armed Forces	177	0%
zz - Foreign	10	0%
zz - U.S. Possessions	8	0%
Total Sales	314505	100%

TAX CREDIT STRATEGIES

The $8,000 Federal First-Time Home Buyer Tax Credit is set to expire on November 30, 2009.  To meet the deadline, it important to get a home under contract almost immediately.  However, there are other opportunities to take advantage of the Federal Tax Credit that can close in a shorter timeframe than a sales transaction using conventional or FHA financing.  Here are some examples from the St. Louis market:

• 100% Developer Financing
• 90% Seller Financing
• Short-Term Financing

For those who have started the process late, there are still some great opportunities to take advantage of Federal Tax Credit.

Interested in taking advantage of the Federal Tax Credit in St. Louis, Missouri?  Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 to explore alternate tax credit strategies.

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PREA SIGNATURE REALTY

 

 

 

PREA Signature Realty is a full service brokerage located at 1709 Park Avenue in the Lafayette Square neighborhood of the City of St. Louis.  PREA Signature proudly serves the following city neighborhoods:  Lafayette Square, Soulard, Benton Park, Benton Park West, Downtown Loft District, Forest Park Southwest, Central West End, Tower Grove East, Tower Grove South, Compton Heights, Shaw, The Hill, Dogtown, Carondelet, Holly Hills, St. Louis Hills, Dutchtown, and the Other Historic Neighborhoods of the City of Saint Louis, Missouri. 

The opinions expressed herein represent the opinions of the author only and do not reflect the opinions of PREA Signature Realty.  All photos and written content were produced by PREA Signature Realty.  All Rights Reserved - PREA Signature Realty (2009).  This content may not be reproduced or reprinted, except for Active Rain re-blogging, without express written permission of PREA Signature Realty.

For more information, visit our website at www.PREASignatureRealty.com or contact Ryan Shaughnessy at 314-971-4381 or send an email to Ryan@PREASignatureRealty.com.