This comes as no surprise. I had a long conversation with a friend about this the other day. We were standing on her front driveway and she was pointing at all the homes in her neighborhood that were bought over the past month by young people, she suspected this was because of the tax credit. My neighbor sold his house to a first time homebuyer in 5 DAYS!
Sales and homebuilding are being fueled in part by a federal government tax-credit of up to $8,000.
In Sioux Falls, first-time homebuyers accounted for 41 percent of the sales in August, said Barton Hacker, chief executive officer of the Realtor Association of the Sioux Empire.
We’ll see what happens after this credit is over with. I suspect you will see a dramatic drop in home sales. I hope realtors are smart enough to open a savings account.