$8,000 tax credit is the stimulus for the housing market

Analysis: Tax Credit Adds 357,000 Buyers

A study estimates that 357,000 buyers have been motivated so far by the $8,000 First-Time Homebuyer Tax Credit.The study by Campbell Surveys, a division of Campbell Communications, calculated the figure by comparing the number of first-time homebuyers before and after the tax credit was instituted. The percentage of first-time buyers rose from 32 percent in January and February to 43 percent for the rest of the year – except July when the rate fell to 42 percent. Campbell’s Research Director Thomas Popik pointed out that this survey mirrors the numbers calculated by the National Association of REALTORS® and those from Moody’s Economy.com.The data supports legislative efforts in both the U.S. House and Senate to extend the tax credit.

Source: HousingWire.com, Austin Kilgore (09/22/2009)