Real Estate Agents Say Tax Credit Is Doing Little To Increase Home Sales

Property Wire 03/08/2010 12:51

With almost a third of US mortgages upside-down, many move-up buyers are unable to sell their present homes and therefore cannot take advantage of the expanded tax credit. Despite a looming deadline, the real estate market is showing little sense of urgency, as sales continue to slump and loan applications are at their lowest level in a dozen years.

The latest US home buyers tax credit aimed at stimulating the country’s residential property market is doing little to increase sales, according to real estate agents.

Last year the first tax credit for new buyers helped boost home sales but since the federal government made it available to existing property owners the same surge has not happened.

Real estate agents around the country say the credit is doing little to elevate sales. They point out that unemployment is still high at around 10% and consumer confidence is falling.

Property prices have stabilized in some markets but are still a third below their 2006 peak. Droves of people who want to sell are stuck because their home is worth less than they paid for it. Also harsh winter weather has Americans shoveling driveways instead of preparing their home for buyer visits.

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