Where is the Federal First-Time Home Buyer Tax Credit Producing the Most Sales? You Guessed It - California, Florida and Texas

FEDERAL FIRST TIME HOME BUYER TAX CREDIT USAGE (AS OF AUGUST, 2009)

Recently, there has been impassioned pleas from the HBA, NHBA, NAR and other trade organizations seeking the extension of the $8,000 Federal First-Time Home Buyer Tax Credit ("Federal Tax Credit"). Often, we receive questions as to how the Federal Tax Credit is impacting sales in the St. Louis area. Although the statistics vary based on their source, the U.S. Treasury released its August report which indicates that three states - California, Florida and Texas - accounted for 72% of the sales transactions in the nation utilizing the Federal Tax Credit. In Missouri, there has been a modest use of the tax credit with 6,615 closed sales transactions (or 5% of the total national closed sales transactions).

Here are the states with 6000 or more closed sales transactions using the Federal Tax Credit:

Here are the state by state breakdown of closed sales transactions using the Federal Tax Credit:

TAX CREDIT STRATEGIES

The $8,000 Federal First-Time Home Buyer Tax Credit is set to expire on November 30, 2009. To meet the deadline, it important to get a home under contract almost immediately. However, there are other opportunities to take advantage of the Federal Tax Credit that can close in a shorter timeframe than a sales transaction using conventional or FHA financing. Here are some examples from the St. Louis market:

• 100% Developer Financing
• 90% Seller Financing
• Short-Term Financing

For those who have started the process late, there are still some great opportunities to take advantage of Federal Tax Credit.

Interested in taking advantage of the Federal Tax Credit in St. Louis, Missouri? Contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 to explore alternate tax credit strategies.