Favorable News for US Homeowners
In the United States, the GDP documented 3.5% increase in the third quarter – for the first time in a year. Since the end of last year the property market is also showing large advancements.
Are our counterparts starting to come out of the recession? Right now, the US property market is managing with 7.5 months’ supply of stock. This sounds like quite a lot, but in contrast to January’s 12.4 months’ stock, it is a large improvement. Eyes of all real estate agents (but also probable buyers) are now on one thing – the first time home-buyers’ tax credit.
With $8,000 in tax credits, or even cash back in some situations, these available tax credits have gone a long way in helping advance the real estate market. Nonetheless there is now ripples of nervousness running through those watching the market, as the availability of these credits is due to finish. What is the subsequent step once these incentives have ended?
All is not lost as an extension bill for the tax credits is being formulated which will delay the cut off for a further year until 2010. Senate has presently cleared the passage for the law, which may arrive with Obama this week or next. Not only is the time frame about to be prolonged till April 30, the allowable income threshold for couples will also increase to $225,000. For home buyers hoping to move up the real estate ladder, the plan is to attach a $6,500 tax credit to encourage them to move.
Passing this bill may stoke our southern neighbour’s property market enough to get through the winter, however, the question remains: how will the US federal budget sustain this hit?
Filed under: Real Estate News