So, you’ve probably heard about the $8,000 tax credit
available to first-time homebuyers. Well, the real drag about this offer was that buyers had to wait until tax refund time to see that eight grand and didn’t get it right away to put towards the purchase of their home. Well, beginning Friday, the credit became instant, so buyers could use the money on their down payment or their closing costs. CNNMoney.com really captures the excitement of this new policy with a quote from Shaun
Donovan, HUD Secretary,
“Families will now be able to apply their anticipated tax credit toward their home purchase right away. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
As the chart shows, first-time homebuyers already compose half the market, a market that is dominated by the sell and purchase of foreclosed homes and short sales. Last week we discussed how the short sale market here in SoCal has already grown very competitive; it could get a lot hotter once word gets out that the HUD credit is now instant.
Minda Reves is a freelance blogger for SHORTsense.com