First-time Home Buyers Boost Housing Market

There is little doubt the $8000 tax credit is helping to drive home sales and stimulate the housing market/economy.  Since the tax credit was offered at the beginning of the year, thousands of home sales have been closed.  Many more sales will be closed within the next month as buyers work on closing their properties by the November 30 deadline. 

Actual numbers on this incentive will not be available for a couple months, but many industry experts are questioning whether or not the housing market will fully recover without an extension of this credit.  Kelly Cobb, a broker with Fonville Morisey Realty, said four of the six listings her office put under contract in the last month involved first-time buyers.  Cobb said that as the deadline gets closer, she’s seeing more lower-end homes with multiple offers on them. “It has really, really fueled our market,” she said. “I think anybody who waited until now is going to pay top dollar.”

Many brokers believe that people who are interested in taking advantage of the tax credit have 5 more weeks to begin closing on a home.  It’s not too late to take advantage of this tax credit, this might be a once in a lifetime opportunity.  In many situations, there could not be a better time to buy.