PrintThe new $6500 tax credit for existing homeowners makes buying a new home more attractive for about 20 percent of owners according to a new Coldwell Banker survey released yesterday.
No doubt the tax breaks for both first-time and existing buyers will mean a lot of business for real estate brokerages, but Coldwell Banker is also focused on what happens after credits expire next spring.
“Our survey offers positive indicators that there are more existing homeowners considering a home purchase today than there were six months ago, and the majority of respondents say they would engage in ’smart spending’ that would directly benefit the U.S. economy,” said CB’s CEO Jim Gillespie in a prepared statement.
In interview with Real Estate Economy Watch, he shared some of his personal insights regarding the credit and its aftermath.
“There’s no doubt that the first-time homebuyer credit really worked this year. Every sale generated $60,000 in revenues and jobs for the local economy beyond the value of the transaction itself. Multiply 400,000 sales times $60,000 and you get an idea of the impact on the economy,” he said.
“Now we’re reaching out to our sales people across the country to make sure they are prepared for frequently asked questions about the new credits for existing buyers, whether they are move-up or move-down buyers.” However, it’s not just the credits that concern Gillespie. He’s also thinking about what happens to the market when the credit ends.
“Will there be a lot of scrambling among buyers to get in under the deadline like there was in October? This time, there has been clear communication early on as to when it will expire. The two month period to close should avoid a lot of uncertainty,” he said.
“What are the buyers going to look like after April 30? Right now there is a lot of uncertainty about what will happen. We’re in new territory.”
Founded in 1906, Coldwell Banker is the oldest real estate company, with nearly 3,900 independently owned and operated real estate offices in the US and around the world. In June, J.D. Powers ranked it highest in customer satisfaction of home sellers with a score of 815 and second highest in customer satisfaction of buyers…
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