The Effect of the $8000 tax credt on Tucson Real Estate
December 2, 2009
Post Tags: $8000 first time home buyer tax credit , Tax Credit Extended
How Big is The Effect of the Tax Credit on Tucson?
Nobody Tracks this stuff
That’s the question I’ve been asking around lately. Here is what I’ve learned so far and what I speculate.
What I’ve learned.
Most brokerages in town don’t track this. There is no place in their software to track if a buyer took advantage of the tax credit or not. The same is true of the Tucson MLS, no bucket to track this statistic. I haven’t checked with a title company yet to see if there is software tracking this for Pima county.
Where does this leave us for a tally of what the effect of this tax credit is on the Tucson real estate market? It leaves us to speculate on the impact based on anecdotal information. We can also take a look at the market itself as well as the community.
What We speculate
We speculate the effect is more incidental than intentional in Tucson. I mean, there are buyers in the market who haven’t owned a home in three years or are for the first time making a home purchase. They are buying because they need a place to live in Tucson and prices haven’t been this low in 5 years. They aren’t buying because they can get $8000 off the total purchase price. Buyers here are taking advantage of the tax credit when they buy, but it isn’t the reason they are in the market.
Is There Any Benefit to it being Extended?
If it isn’t a driving force in purchases in Tucson, is there any benefit to the Tax credit being extended? Yes, there is and not just because it give buyers more time to take advantage of the tax credit. Tomorrow’s post will cover what I think is the biggest benefit of extending this legislation.
