Here's some interesting data on where the Federal 1st-Time Home Buyer Tax Credit is getting utilized the most.
Ryan Shaughnessy is a broker (and fellow stats junkie) from St. Louis, MO. He and I will be starting a radio show together next month - stay tuned!
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:
State # of Sales using Tax Credit % of Total Sales using Tax Credit Alabama 5046 2% Alaska 485 0% Arizona 9357 3% Arkansas 3021 1% California 42,304 13% Colorado 6210 2% Connecticut 2230 1% Delaware 861 0% District of Columbia 471 0% Florida 29,132 9% Georgia 11,109 4% Hawaii 488 0% Idaho 2457 1% Illinois 9918 3% Indiana 5866 2% Iowa 3455 1% Kansas 3147 1% Kentucky 4105 1% Louisiana 4353 1% Maine 931 0% Maryland 5022 2% Massachusetts 4548 1% Michigan 9237 3% Minnesota 6964 2% Mississippi 2949 1% Missouri 6615 2% Montana 1041 0% Nebraska 2771 1% Nevada 5259 2% New Hampshire 1062 0% New Jersey 5500 2% New Mexico 1466 0% New York 8076 3% North Carolina 9355 3% North Dakota 659 0% Ohio 9172 3% Oklahoma 4300 1% Oregon 3565 1% Pennsylvania 10,250 3% Rhode Island 964 0% South Carolina 4684 1% South Dakota 886 0% Tennessee 8549 3% Texas 29,536 9% Utah 4623 1% Vermont 351 0% Virginia 9093 3% Washington 6229 2% West Virginia 788 0% Wisconsin 5202 2% Wyoming 648 0% zz - Armed Forces 177 0% zz - Foreign 10 0% zz - U.S. Possessions 8 0% Total Sales 314505 100%
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.
PREA SIGNATURE REALTY
PREA Signature Realty is a full service brokerage located at 1709 Park Avenue in the Lafayette Square neighborhood of the City of St. Louis. PREA Signature proudly serves the following city neighborhoods: Lafayette Square, Soulard, Benton Park, Benton Park West, Downtown Loft District, Forest Park Southwest, Central West End, Tower Grove East, Tower Grove South, Compton Heights, Shaw, The Hill, Dogtown, Carondelet, Holly Hills, St. Louis Hills, Dutchtown, and the Other Historic Neighborhoods of the City of Saint Louis, Missouri.
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