Results have just been released of a study conducted by Rosen Consulting Group as to the effectiveness of the 2009 first-time-homebuyer tax credit and the potential need for an extension of the credits.
The Rosen Consulting Group was retained by Fix Housing First, a coalition that was originally working to convince Congress for a housing stimulus package that they feel would have a more significant then what was ultimately passed, and since has been working to get the tax credit extended beyond its current expiration date of November 30, 2009.
The effectiveness fo the tax-credit among low and middle income households can be seen by the reduced housing inventory in the lower prices according to the study. In June 2009, the months of supply of homes priced less than $300,000 fell to 6.0 months, down 25.96 percent from 8.1 months a year ago.
The study points out the housing market conditions are still very challenging and the “if the tax credit expires, it is likely that lender-owned properties will quickly increase available supply as buyer demand retracts, particularly among low and middle-income families.
Fix Housing First is now asking interested parties to take a moment to weigh in and let the White House and Treasury Department know that the homebuyer tax credit is working and to urge them to extend it as well as expand it to apply to more than just first-time homebuyers. If you share this sentiment and can spare about 30 seconds then please click here to send your message!