housing market-Finally after a year of terrible news, the US have, for the third quarter, documented a GDP increase of 3.5%. Since the end of last year the property market is also showing large development.
Is the United States starting on the road to recovery? There is a surplus of 7 months worth of stock on the US property market at this point in time. There has been great inroads into the extra stock on realtors book’s considering this figure was nearly double at the start of the year. The tax credit for first time buyers is now being watched very carefully by probable buyers and also by real estate agents.
The chance to receive a $8,000 tax credit (or even cash back, if the recipient’s income tax doesn’t reach this level) has been a strong stimulus for the US real estate market. All nice things must come to an end and these tax credits are due to expire soon, leading to disquiet amongst the market watchers. What will occur once the tax credit is no longer on the table?
All is not lost as an extension bill for the tax credits is being written which will delay the time limit for a further year until 2010. Senate has presently cleared the way for the law, which may reach Obama this week or next. Not only is the time frame about to be extended till April 30, the allowable income threshold for couples will also jump to $225,000. And that’s not all – a new $6,500 tax credit for move-up homeowners was linked to the bill.
Passing this bill may stoke our southern neighbour’s property market enough to get through the winter, but, the question remains: how will the US federal budget sustain this hit?
Posted by My First Home Blog India