Home Buying in Armonk>Question Details

Robert Paul, Real Estate Pro in Bedford, NY

Did the Obama Tax Credit for First Time Home Buyers help the Armonk Market?

Asked by Robert Paul, Bedford, NY Thu Jul 8, 2010

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Directly, probably not. Indirectly, maybe, but to a limited degree. The Obama tax credit had income limits that made it virtually impossible to qualify for in affluent areas like Armonk (or for most other white collar workers in the NYC area, given the higher incomes/cost of living here). And the dollar amount of the credit was relatively small compared to home prices in that area. However, if homebuyers looking to move up needed to sell their homes in a cheaper neighborhood in order to buy in places like Armonk, then it would have helped them sell to a degree, which in turn helps them to buy in Armonk. Also, human behavior can be strange. Some people would drive 20 miles out of their way to save 20 cents on a loaf of bread. I heard of cases where sellers raised their prices by more than the amount of the tax credit before the expiration date, only to drop prices back down right after the expiration date passed. So who really benefited from the tax credit? The buyer or the seller?
0 votes Thank Flag Link Tue Jul 20, 2010
Define help.

If you mean did it help more houses to sell at perhaps a higher price than they would have otherwise until the credit ended I am sure it helped.

If you mean did it help the housing market to really stabilize so prices will not drop for the next few years the answer is no, it did not help.

Did the credit help more buyers to buy this summer? Absolutely not!!! It is over. It cost you the buyers who bought then and normally would be buying now.
0 votes Thank Flag Link Thu Jul 8, 2010
The tax credit helped all area's. It spurred buyer who may have waited a year or longer to purchase now. It helped spur the economy, it allowed sellers who were in dire straights to be able to sell and get out of debt saving them from foreclosure. it increased purchased at home improvement stores like lowes or Home Depot as people were renovating these new purchases. When the tax credit ended, so did the purchasing, In some areas 50-75% declines in new purchase and sales agreements for May and june were seen.

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0 votes Thank Flag Link Thu Jul 8, 2010
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