Jul 26, 2009 6:28 pm US/Central
First-Time Homebuyers Rush To Get Tax Credit
(WCCO)
It's the height of mid-summer, but some first-time homebuyers are rushing to beat a Nov. 30 deadline. First time homebuyers can get up to $8000 off their taxes if they buy a home now, and close before December.
It's a rare bright spot in a housing market with very few of them.
Chris Satterlie and fiancé Karen Lu needed just a little push to jump into the housing market.
They planned on renting after they marry in March. That's before they heard about the tax credit for first-time homebuyers.
"I think we would have been content for maybe renting another year or doing something a little cheaper," said Satterlie. "But with this $8000 stimulus, its kind of that added incentive too, now's the time to look, find something nice out there, take advantage of it. "
Almost half of all the homebuyers in Minnesota are like Chris and Karen -- first-time homebuyers. And it may be making a difference.
Minneapolis area realtors report a slight uptick in home sales. That's a little bit of good news in a housing markets that has been devastated by the economy.
Home sales were in free-fall last year and some realtors say the tax credit is creating a market for homes priced below $200,000.
"It was horrible," said Jason Burbul, a realtor with Keller Williams Realty, recalling 2008 sales. "Now it seems like it's a huge amount of competition for homes in that price range right now."
The tax credit expires in November so U.S. Senator Amy Klobuchar is warning homebuyers to close on homes before then.
"You can never predict exactly what's going to happen in Washington, so our message today is use this tax credit while you can," said Klobuchar.
Chris and Karen have looked at more than 20 homes so far and they admit they are feeling the pressure.
"Especially the price range we're looking at," said Lu. "The market's moving pretty fast."
For more information on the first-time home buyer tax credit, click on the link below.
First-Time Homebuyer Tax Credit
Minnesota Home Ownership Center: Tax Incentives Fact Sheet
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