From the Philly Inquirer:
Liv Mansfield is racing the clock, hoping to find and settle, or at least sign a purchase agreement, on a townhouse before the $6,500 tax credit for qualified repeat home buyers expires April 30.
While the credit is not as important as staying in the Wallingford school district, where her younger daughter will enter sixth grade next fall, Mansfield says it will help make expenses associated with the move “a wash.”
“It will help with moving costs, and with getting this house ready for sale,” said Mansfield, who has lived in the five-bedroom split-level Colonial she bought with her former husband nine years ago.
The house, which she says is far larger than what “two people and a small dog need,” will list for under $525,000 and heads for the market Feb. 15.
It seems less is known about the repeat-buyer credit. This incentive was added when the original $8,000 tax credit for qualified first-time buyers, which expired Nov. 30, was extended.
Moody’s Economy.com chief economist Mark Zandi says the credit will boost sales “modestly,” however, by 300,000, with one-third trade-up buyers.
“I don’t expect the credit to be extended again,” Zandi said. “Each time it is extended, it becomes less effective and thus more costly.”
Builder Bruce Paparone of Bruce Paparone Inc. in Stratford, N.J., said a better understanding of the credit would result in more sales for him.
Still, “the incentive has definitely affected the buying decision of at least five of our last seven sales,” he said.