Federal Housing Tax Credit may be why New Home sales up 27 Percent last Month

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[Best Syndication News] There has been a boom in new housing sales, with an increase by 27 percent last month. This might be related to the Federal Housing Tax Credit for first-time home buyers and repeat home buyers which is going to expire at the end of April.

The Commerce Department US Census Bureau announced that permits for new housing units increased 7.5 percent for the month of March. Permits have increased 37.6 percent and housing starts have improved 30.7 percent since last April of 2009.

The increase in home sales might be attributed to the federal tax credits being offered that are going to come to an end this month. The federal home buyer tax credit incentive is offering an $8,000 credit for first-time home buyers, and a $6,500 credit for current homeowners that purchase and relocate to the new home.

You have until April 30th to enter into a binding contract to purchase the home and you have to have the transaction complete by June 30th, 2010. There are income restrictions depending on when you purchase the home. Homes that are priced above $800,000 are not eligible for the tax credit. You also cannot take the tax credit if you purchased the home from a relative.

By: N Wilson

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