Monday, January 3, 2011

The Cost of the 3 Home Buyer Tax Credits. So what happens in 2011?

The Cost of the 3 Home Buyer Tax Credits. So what happens in 2011?


About $7.3 Billion in Interest Free Loans were made in the first tax credit.
Buyers will be repaying those back.

However, $16.2 billion in tax credits that don't have to be paid back under the second and third credits were taken.

The second version of the home-buyer tax credit has 1.7 million claims totaling about $12.1 billion

The third version of the tax credit has 600,000 buyers.

The total cost of this to country will be $22 Billion through 2019.

(1) California, the most populous state in the country, ranked 1st with the most FTHBC dollars claimed under the Housing Act provision, as well as under the combined provisions of the Recovery and Assistance Acts.

However, California ranked 32nd and 29th in the amount of FTHBC claimed per resident under the Housing Act provision and under the combined provisions of the Recovery and Assistance Acts, respectively.

(2) Nevada ranked 1st in the amount of FTHBC claimed per resident under the Housing Act provision, as well as under the combined provisions of the Recovery and Assistance Acts. However, Nevada ranked 26th and 24th in the amount of FTHBC dollars claimed under the Housing Act provision and under the combined provisions of the Recovery and Assistance Acts, respectively.

(3) Utah ranked 1st in the average dollar amount of FTHBC claimed per claim under the Housing Act provision, as well as under the combined provisions of the Recovery and Assistance Acts. However, Utah ranked 29th and 30th in the amount of FTHBC dollars claimed under the Housing Act provision and under the combined provisions of the Recovery and Assistance Acts, respectively.

Source: http://www.gao.gov/

GAO.GOV


Clearly, without these Credits home prices would be much lower today.
The three Credits brough about a Market and Home price stabilization.

So the questions are:

1.) what happens in 2011 without any credits in sight?

2.) are we better of without these Tax Credits and letting the market determine
the home prices?

3.) so would a buyer who got the 1st Credit that has to be paid back, feel he got
a better deal or does the buyer feel he should have waited?

Looking for homes in Bay Area, Silicon Valley go to:

http://www.ruthandperry.com/


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