The clock is still ticking on the first time homebuyer tax credit. The next two weeks will continue to see frantic activity from purchasers trying to get their $8,000, as the practical deadline for closing on a home by the end of November approaches.
As discussed in a previous blog, there are several bills which propose expansion of the deadline and program, and none of these are doing anything.
One Realtor, who happens to be a senator, is proposing another bill – to expand the credit to $10,000 for all home buyers (reduced from a proposed and defeated $15,000).
Do buyers feel this bill will get passed? Apparently not. Take a few areas of East Austin home sales:
University Hills is a classic neighborhood for first time buyers – larger homes, larger lots and close to Mueller and 15 minutes from Downtown. Inventory has dropped from 6 months last year to just over a month right now. There are 13 homes under contract and 20 available – a strong sellers market. I’m expecting to get multiple offers on a University Hills home coming up for sale there at the end of the week.
The last two homes I’ve sold in East Austin’s up and coming 78702 have also seen multiple offers from first time homebuyers. This is one of the only areas within a few miles of downtown Austin where buyers can get a single family home under $200,000.
So right now, buyers seem to believe the tax credit is going away soon, and that the $8,000 bird in the hand is worth two $10,000 birds in the bush.
Garreth Wilcock is an Austin Realtor ®. You can search Austin homes for sale at his website.
