Providing the much needed stimulus to the housing sector, the $8,000 tax credit for the first time home buyers has led to a surge in home sales.
Stabilizing housing sector
The data released Friday by the National Association of Realtors (NAR) highlights that the housing sector is increasingly stabilizing across the nation.
Beating analysts’ expectations, sales of existing homes increased 9.4 percent from August to September, the fifth rise in six months.
With this jump, the sales adjusted annual rate of 5.57 million units in the month, after declining to 5.1 million units in August.
Further, the third quarter sales of existing homes have been highest since 2005. Also there has been a 25 percent increase in the sale of new homes compared to the same quarter in the last fiscal year.
The home sales that are still in the process of finalizing have been at the highest level ever in September.
According to analysts, home sales have increased by nearly 24 percent since January, when the housing market had hit its lowest.
Tax credit nearing end
The real estate agents and mortgage lenders have largely credited this increase to home tax credit.
As of now, more than 1.5 million buyers have received tax credit, according to Internal Revenue Service.
But the tax credit will close at the end of November, meaning that buyers will be eligible for the credit only if they close their purchase by Nov. 30 and the prospects of extending it further remain doubtful.
The government has raised concerns over the increasing costs as extending tax credit is expected to cost $1 billion a month. But some lawmakers are backing the extension as they claim that recovery is evident but fragile.
Senate Majority Leader Harry Reid of Nevada has proposed a 13-month extension under which $8,000 tax credit will be provided for four months and gradually the credit will be phased out by the end of next fiscal year.
A vote on the proposal is expected next week, when the Congress will be also discussing whether or not to extend the federal unemployment insurance benefits.
Home tax credit
Many have surely availed of those home tax credits. Who else do not? Aside from that it is limited it is available for all. All will take the opportunity to at least once they can take the tax for credit. Well, since this tax credit may end soon people will look for that they can avail of that will lessen their expenses and easy cash. Getting cash advance loans is never an easy thing to contemplate, but sometimes we have to do it and sometimes we need financial assistance quickly. That's why you want to find a cash advance loans lender offers no faxing loans. Loans with no faxing are typically small amounts, usually something you can pay back on your next payday. A mortgage size loan with no faxing…well, if you go to a bank and request one, they will laugh at you, or think you're a drug dealer…and laugh at you! Besides…who still FAXES? They did invent e-mail. That said, if you need cash advance loans in a hurry, there are no fax cash advance lenders out there.
Tax Credits
While tax credits may just be a "shot in the arm" and not necessarily a long-term fix for the housing market, I think they are worthwhile at this point..This is the worst housing market I have seen in the 30 years I have been in the business and it needs some help...The credit has been just enough to help give buyers that are "on the fence" that little nudge they need to move forward, plus gives them a little bit of insurance just in case prices have not bottomed out..There was a study done by the Rosen Group that showed the tax credit has been the primary reason buyers have returned to the market...I included the info from the survery as well as info and a link for Fix Housing First, a coalition that has been working to extend the tax credits, in a post I did at:
http://realestateconsumernews.com/home-sellers/homebuyer-tax-credit-has-...
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