$8,000 Tax Credit Effects In Philly and Nationally
Philadelphia Real Estate
$8,000 Tax Credit Effects In Philly and Nationally
Al Heavens had another piece in the Philadelphia Inquirer that discussed the effects of the expired $8,000 Federal Tax Credit on the Philadelphia real estate market. In the article economists use the image of a “two-hill roller coaster” to describe the effect the tax credit had on the housing market nationally and locally. The federal tax credit caused a spike in interest and purchases in March and April of this year by incentivizing buyers that would have purchased in May, June or later in the summer. According to Heavens the tax credit had the following effects on the housing market:
• Buyers rushing to get the tax credit competed for more desirable homes and this competition helped to accelerate median-price recovery.
• As a result the national median price is slowly approaching what experts consider normal ranges. Rising home prices equals a reduction in the number of homes that will be subject to foreclosure.
• Increased sales helped to reduce the number of foreclosures and the sale of bank owned properties for below market value
• For sale inventory is at 8.4 months nationally with the target of 6 months being reached in many markets.
Now that the credit has expired brokers are reporting “record price reductions” in some cases as much as “three to four times the tax credit…buyers who waited until now may get the best deals of all”.
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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
[email protected]
www.CenterCityTeam.com
