Home sales far exceeded expectations last month, surging to the highest level in 2.5 years as first-time buyers rushed to take advantage of an expiring ( I said this credit would not expire back on 10-25—Government Subsidized Real Estate) tax credit. But, the credit was extended ( Government Home Buyers Credit Extended & Expanded) until April 2010.
httpv://www.youtube.com/watch?v=bXY0jWClkOE
To see what the ‘real’ cost of this program has been, view :Â Cash For Homes Cost Govt. $43k per Home!
Will the $8,000 credit really turn out to be a good deal if it just pulling sales from future months that would have occured anyway? Plus, there is a good probility that home values in many already hard-hit areas could drop double digits in 2010. So, a 10% price decline on a $500k home would be $50k, or a net loss after the $8k credit of $42k! Just food for thought.
Since tax credit is extended there might be first time buyers who are willing to avail properties which are really for sales. If you about to buy properties try to consider homes in San Diego.