Unemployment likely part of reason people not taking advantage of savings
It sounded like a great idea three months ago: Hand homeowners a $6,500 tax credit to find a new place to live, giving a thrust of energy to the housing market's recovery.
So far, people are staying put.
In November, the federal government extended a tax credit of up to $8,000 for people who hadn't owned a home for three years. This credit had helped boost home sales last summer and fall. Seeking to build on that momentum, the government added a new credit of up to $6,500 for current homeowners, hoping it would transform them into house-hunters this winter and spring.
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3 comments:
All fine and dandy but if you owe $170K on a home now worth $140K you are stuck in your home with no hope to sell and buy new. Instead of bailing out the mortgage companies the money could have been used to renegotiate current mortgages to their current home values.
If you only dropped 30K you did good.
Joe, we are in the process of "moving up" to a newer home. The $6,500.00 credit only applies to a $650,000.00 home. The credit is 10% of the purchase price up to a $650,000.00 home. Likewise the first time buyers credit of $8,000.00 is a 10% deal up to $800,000.00. How many first time buyers buy an 800k home? More slick wording from Washington.
Source - IRS website
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