Tax-credit extension would help sell houses
October 14, 2009
Source: Canton Repository
By G. Patrick Kelley
U.S. Sen. Sherrod Brown, D-Avon, may have the word many in the real estate community have been seeking.
Brown and a bipartisan group of a dozen senators want to promote an extension of the first-time homebuyer's tax credit, said spokeswoman Meghan Dubyak.
That could perk up Stark County numbers, with average sales prices at $102,042, compared to $105,627 a year ago. Sales also are slightly lower, with 309 homes sold last year, compared with 271 last month.
The one bright spot is that homes, on average, are sitting on the market for only 96 days, compared to 106 last year.
The tax credit Brown wants to extend is for 10 percent of the sale price up to $8,000 for first-time homebuyers. It's part of President Barack Obama's economic stimulus package. But the credit expires Nov. 30, and real estate people know they have little time to put deals through before then.
"Somebody would have to buy within the next week and hope they could push it through," to beat that deadline, said Realtor Dennis Drennan with RE/MAX Commitment.
Brown plans to propose an extension of the tax credit through May 31, Dubyak said. It has helped more than 48,000 Ohio families purchase their first homes.
"The senator thinks it's critical to economic recovery," Dubyak said. "The idea is to see how it will continue to affect the economy.
"The idea is to start with a six-month extension and evaluate its effect later."
The real estate market still is "a bit of a challenge," Drennan said. "It's the first time homebuyers that have been hanging us in there.
"That (tax) credit is the 800-pound gorilla in the living room," he said. "When that goes, everything goes with it."
Higher-priced homes still are more difficult to sell, he said. "It used to be location, location, location. Now it's price, price, price."
The average days on the market are down because with the first-time homebuyer's credit, "If they're priced right, they're moving faster," Drennan said.
