I think it is safe to say that the $8000 first time homebuyer tax credit has made an impact nationwide on home sales. I know I have seen it here in the Charleston SC real estate market.
So, once it expires December 1 later this year, then what? There have been discussions on if the government will extend the credit into 2010. There are suggestions to expand the credit to all homebuyers, not just first timers. And possibly increasing the credit.
There are many arguments for each of these options--but they all boil down to further helping the real estate market recovery and increasing home sales. Just what kind of impact might these have?
Weichert.com recently did a survey of 500 guests to the website. While this is by no means a true, scientific research, it does show that any of these possibilities could have a tremendous impact on the real estate market for 2010.
By expanding the current tax credit to $15,000, the number of highly motivated first time buyers would increase by 40%.
Of current homeowners, 4 out of 5 said they would be somewhat to highly motivated to buy another home if they were to receive the $8000 tax credit. If the credit was expanded to $15,000, existing homeowners motivated to buy would increase to 94%.
While just a small slice, this survey seems to reflect what many people feel, and are starting to voice. Recent bills were submitted in Congress seeking to expand and increase the tax credit. When Congress was passing the original tax credit bill for first time buyers, the original amount was $15,000. This will be an interesting development to watch over the next few months.
Thinking of selling or buying Charleston SC real estate? Be sure to visit my website, your resource for information about selling or buying Charleston homes.
Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or firstname.lastname@example.org.