The home buyer tax credit
... made a big difference in the Charleston real estate market and while it was controversial to both expand and extend the home buyer tax credit or even have it in the first place, the home buyer tax credit will continue to be positive for the market over the next few months.
Let's take a quick look at some numbers. September 2009 was the first month since February 2006 to show a year over year increase with sales just slightly better in 09 at 747 vs. 732 in 08. But in October, sales were clearly higher year over year with 724 in 09 vs. 641 in 08 (and due to late reporting by Charleston real estate agents, expect at least a couple of dozen more). While November would have been the expiration had the tax credit not been extended, last minute buyers closing in November should easily top 08 sales for the month of 507.
The expansion to include home buyers who have lived in their current residence for a minimum of 5 consecutive years of the last 8 and the extension of the first time home buyer tax credit until April 30, 2010 will help the market during the normally slow holiday season and the usually sluggish first few months of the year until the spring selling season gets under way in March.
My only complaint is establishing the five year minimum ownership period for existing home owners to qualify for the credit. It actually penalizes those who happened to buy during the peak of the market and if they might want to either move up or downsize, they won't be able to take advantage of the tax credit.
Get the complete details of the extended and expanded home buyer tax credit.