Is the Tax Credit Working?

April 19, 2009 · Adam Chinn

new-construction I recently came across an article by the (CBIA) California Building Industry Association entitled, “New-Home Sales Still Historically Slow in February”. The title does suggest that this is indeed another sub-par month for the real estate business as well as our economy but as I read on I did find some very positive news that will hopefully bring us closer to the bright future. Positive news such as, us finally seeing the bottom of the housing declines.

I am current working with some clients who are interested in purchasing their first home in a New-Home Community. They would be Eligible for both the $10,000 New-Home Tax Credit as well as the $8,000 First Time Homebuyers Tax Credit. This of course would make a huge difference for them financially, who wouldn’t want an extra $18,000 in credit when purchasing a home?

If you would like to view the article please visit California Building Industry Association.

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Filed Under Important Thoughts, Local Trends, Neighborhood News

Tags: $10, $8000 tax credit, 000 tax credit, Adam Chinn, CALIFORNIA ASSOCIATION OF REALTORS, Daly City Real Estate, New Home, Prudential California Realty San Bruno, tax credit

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7 Responses to “Is the Tax Credit Working?”

Kathy Wall on April 19th, 2009 2:00 pm

Hey Adam…

Terrific 1st blog! I truly do believe that we’re hitting the bottom. Lots and lots of people out looking right now and more seem less afraid to make the jump.
Jonathan Shaw on April 19th, 2009 5:49 pm

Hi Adam,
Great article, again supporting that we are slowly moving in the right direction and these incentives will help first time buyers enjoy their first homes.
Jonathan
Brian Boisson on April 20th, 2009 8:54 am

Great comments Adam!

As from the tax credits, most builders are bending over backwards to put a deal together, with price reductions, free upgrades, special financing etc.

It is a great time to be in the market for a new home.

Brian
Larry Franzella on April 20th, 2009 1:02 pm

The total credit available to a buyer of a new home of $18,000. is a great incentive.

Larry
Adam Chinn on April 20th, 2009 5:24 pm

Thanks everyone for the comments. As Brain mentioned most builders are offering great price reductions, free upgrades and special financing, a few things I forgot to mention. Not only do you get a brand new home but the price can be lowered with upgrades thrown in…WOW, things sure have changed, now is a great opportunity to make that move to purchase a new home.
michael monozon on April 21st, 2009 8:46 am

Adam, great information, It would appear that the new home builder might be the most motivated of all sellers. While the recent past may not have had the best results, over the past 20 years or so the purchase of new construction has been a real strong investment. One big advantage has been the lack of repairs and remodeling that older homes may have needed. History has a habit of repeating itself, maybe this is the beginnig of that solid growth in new construction
Lee Ginsburg on May 4th, 2009 8:26 pm

Adam,
Yes the $8000 fed tax credit and the $10,000 State tax credit is a major incentive. Considerably better than the interest free loan incentive we had last year. Buyers please keep in mind this is not forever. To receive the Fed credit of $8000 the transaction must close by Nov. 31, 2009. That is going to come mcuh quicker than you might think. The state credit is limited to $100,000,000. Sounds like a lot but I think it might be 1/3 accounted for already. New Home buyers hurry up!
I understand some States are offering bridge loans for the $8000 fed credit. Allowing the buyer to use the $8000 towards his down payment.
Wow not that is a big help. Anyone know if California is working on that?