JONESBORO, AR (KAIT) - With seven days left for new home buyers to capitalize on the federal tax credit, now is the time to buy. The numbers show that new home sales have leaped from record low.
There has been a twenty-seven percent bump in the number of people looking to invest in a new home, after coming off a record low in February.
The real estate industry across the nation is seeing more activity in the buyer's market. "As far as the tax credit and the incentives that have been offered to first time and move up home buyers, we have a pretty good selling environment and a good buying environment," says Kevin Kercheval, with Coldwell Banker. "The interest rates have been low and just the general economic activity in Jonesboro has made us a lucrative place to buy."
In the past month, the industry's seen the most activity they've seen since the summer, especially in the number of people purchasing new homes. "A lot of it probably has to do with the tax credit, but another thing that is helping is the economy getting better. We have not had an oversupply of new homes in Jonesboro. Now, we're getting some new homes and they are selling because there are buyers out there."
What is even more interesting, the number of luxury houses being sold has gone up too. Which means, people are starting to think the economy might be taking a turn for the better, "These buyers who may want to buy a quarter of a million dollar home and up have kind of set back they have examined their own finances and the economy and we feel that there's more confidence than there has been in past years because we've seen an increase in sales of luxury homes," says Kercheval.
He says even though the tax credit program is drawing to a close, he has high hopes for the real estate industry, "Some first time home buyers may slow down for a bit just for the fact that the stimulus is not there, but we're cautiously optimistic that we'll continue to grow and continue to do more sales as the year progresses."
So, if you still want to get the Federal Tax Credit, it is not too late. A contract has to be written up by April 30th, but you do not have to close on the house until the end of June.
The government is also allowing a year extension to those who have recently serves overseas, "A veteran that has been deployed over the past year and hasn't had the chance to take advantage of the credit. The government is going to extend it for a year for veterans. It's an excellent thing that they are going to take care of the troops, and give them the chance to take advantage of this tax credit." Says Kercheval.