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National Real Estate News
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Selling Homes Since 2000
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$18,000 Tax Credit Now Available For Limited Time!!!!
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From the Wall Street Journal: Tuesday we told you that the state of California is poised to offer home buyers up to $10,000 to get off the fence and to the dotted line. The $200 million program, split between first-time buyers of existing homes and new units, should keep the Golden State’s sales moving along post spring-selling season. But, it might not get off to a peaceful start May 1: Get ready for a stampede early on as some buyers rush to overlap with the federal tax credit that’s dangling as much as $8,000 to buyer’s. (yes, that’s up to $18,000 for buying a house)For the federal incentive, contracts must be inked by April 30, while closings have to happen by June 30. The California creditor covers closings on existing or new homes on or after May 1, leaving a short window for double dipping. “We already anticipated increased contract activity in March & April due to the federal tax credit w/ scheduled closings in May & June,” writes Credit Suisse Builder analyst Dan Oppenheimer. “These buyers will now be eligible for both the federal and state credit and will likely consume a significant piece of the state credit given the first-come, first-serve allocation.” He estimates the tax credit will benefit about 14,000 new-home buyers, lasting as long as five months. KB Home & Lennar could benefit the most given “their outsized exposure to California at 44% and 25% of 2009 revenues, respectively, vs. the 20% group average.” Given the state’s existing sales dwarf new sales—2009 saw an average of 42,500 closings per month— that allotment should be snapped up in about a month. |
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