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PO Box 1212 Tampa, FL 33601 Pinellas Updated November 2024
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RETURN TO NEWS INDEX Extending homebuyer credit may boost sales TAMPA - Lawmakers are considering extending the first-time homebuyer tax credit a year to further boost the real estate market. A survey by Zillow.com shows the credit would sway some buyers but that most who qualify would purchase anyway. The extension would come at a big cost: As much as $14.86 billion in tax revenue would go uncollected, according to Zillow. The $8,000 first-time homebuyer tax credit runs through Nov. 30. Congress is considering everything from doing nothing to extending it six months to a year. Some lawmakers want to extend the amount of the credit to $15,000; some want the extension broadened to include all homebuyers. Nearly 1 in 5, or 18 percent, of prospective first-time homebuyers who participated in the survey said extending the tax credit would be the primary influence on their decision to buy a home before the end of 2010. That would mean, according to Zillow estimates, that the extension would persuade 334,000 buyers to purchase a home during the next year. "It doesn't sound like a lot, but it is a meaningful number to annual home sales," said Stan Humphries, chief economist at Zillow.com. "With these new buyers, we could see as much as a 5 percent increase from this year. Without them, sales could be down by as much as 2 percent." Zillow surveyed more than 2,000 adults across the country who qualify as first-time homebuyers. Thirty-one percent of respondents said the tax credit would have no influence on their decision. Reporter Shannon Behnken can be reached at (813) 259-7804. |
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