The nationwide number of home sales since January has risen almost 37% and many feel the first-time homebuyer tax credit and the $6500 repeat homebuyer tax credit, along with other incentives are fueling the rise. Many new homebuyer are reporting that they are having trouble finding a home simply because there are so many people in the market.
The newly extended first-time homebuyer tax credit came with a $6500 repeat homebuyer tax credit that allows individuals who have lived in their home over five years and never missed a payment to buy a home and receive a credit just like the first-time homebuyers.
The first-time homebuyer tax credit brought in a wave of buyers when the housing market was down but with the extension of the program and the addition of things like the $6500 repeat homebuyer tax credit the housing market looks to be rolling back toward stable.
Although the home sales for 2009 are up almost 37% they are still below the home sales from just a few years ago, so a full recovery in the housing market can’t be claimed just yet. However, many feel that an increase in home sales of 37% since January is nothing to balk at and with the first-time homebuyer tax credit and the $6500 repeat homebuyer tax credit backing the housing industry many feel that worries over housing is a thing of the past.
There are pessimists who may look like prophets in time as they say this rise in nationwide home sales driven by the first-time homebuyer tax credit and the $6500 repeat homebuyer tax credit will only create a greater number of defaults and foreclosures within a year.
Whether this is true or not only time will tell, but if the economy can continue to improve, the job market rebound and people reach a more stable state financially, the 37% increase in home sales may give way to a stable housing economy by next year. With more people saving money on mortgage payments it should come as no surprise to see them willing to spend money on Christmas gifts. Before spending a ton of money in the Christmas holiday shopping months it would be smart to budget money correctly.