With the $8,000 tax credit for 1st time home buyers about to expire on November 30th, I was expecting to see a lot more New Albany homes for sale and Columbus homes for sale going into contract. When the tax credit was announced, the experts thought it would jump start the housing market. From my vantage point, there has been little “trickle up” effect seen in New Albany Ohio real estate.
Usually when one home sells, the seller buys another home, and the seller of that home buys another home and it goes on up the line with buyers trading up or down to different homes. What has actually happened is that a large number of the buyers who have taken advantage of the tax credit have purchased NEW homes which means there is no ripple effect following the sale of that home. The builders have moved a lot of spec inventory but the resale market remains unchanged.
A bill was introduced in the Senate to extend and EXPAND the home buyer incentives. It’s targeted at the “move up market” which was what was missing from the current incentive. The passage of this bill is what I think will finally launch a recovery of the entire housing market.
The proposal being would extend a $15,000 tax credit to anyone who purchases a home through the end of next year. A recent Moody’s Economy.com analysis suggests that the $15,000 credit would result in the sale of an additional 675,000 nationally – New Albany, Ohio and the Greater Columbus area would surely see the number of homes sold as well and, hopefully, a gradual return of some of the home equity that was lost during the past several years. Stay tuned or contact Kate & Tony for any updates on the bill.
Until next time,