End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers
The 2010 Home Buyer Tax Credit has officially expired. So, what does that mean to the real estate market? According to a survey released by Prudential Real Estate and Relocation Services, Inc., Americas looking to purchase homes still believe that now is a good time to buy and are confident that home prices will rise. The survey was comprised of 1,000 Americans, ages 25-64, with at least $35,000 household income, completed April 15-20, 2010.
According to the survey, more than 90% of consumers believe that the home buyer tax credits have helped both first time buyers as well as the overall US housing market. 65% of consumers actually shopping for a home believed that the end of the tax credit would have little to no effect on their interest in purchasing a home.
- 46% optimistic about real estate values
- 12% expect real estate prices will decline
- 79% expect real estate prices to increase
- 20% expect real estate prices to increase substantially
- 75% of current renters still believe owning a home is a better long term investment then renting
Of those who recently purchased homes, 61% surveyed cited low mortgage rates as “very important” to their decision. That 61% exceeds both tax credit and cheaper prices. In fact, 66% of those surveyed believe that interest rates will rise.
So, back to the initial question, what will the end of the 2010 Home Buyer Tax Credit mean to the real estate market? Not as much as one would expect. With low interest rates and cheaper prices still driving the market, buyers are still likely to buy.
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