Was the Home Buyer Tax Credit Worth it?In 2009, home buyers were getting 10% back when they made the purchase of their home sweet home, up to $8,000 back. This sounded like a great idea three years ago, even increasing home prices temporarily. But by the second quarter of 2010, home prices dropped by 8.4%. In 2012, prices may fall an extra 5%. According to the report, First Time Underwater: The Impact of the First time Homebuyer Tax Credit published by the Center for Economic and Policy Research, many of the those home buyers have lost more in equity than they gained from tax credit. The local Raleigh movers learned that it would have been better for them to buy later which they probably would have done, had it not been for this incentive. Some of these tax-credit home buyers are now stuck with underwater mortgages.
The home buyer tax credit encouraged buyers to transfer money to sellers and their lenders. Those who paid too much for their homes, even with a tax credit, still paid too much. Some say it's the same phenomenon that happened during the real estate bubble. The local Raleigh moving specialists found out that those who lost the most money are the home buyers that bought less expensive homes in specific cities. 10 cities have had their home prices drop by at least 10% after the tax credit ended, this from June 2010 to December 2011.The decrease in home prices was even bigger in some cities such as 49.1% in Atlanta, 31.4% in Chicago and 19.6% in Seattle.
According to the Government Accountability Office, around 2.3 million buyers took advantage of the tax credit, which cost the tax payers $16.2 billion. The All My Sons of Raleigh moving team learned that the home buyer tax credit transferred $84.9 billion to $170.5 billion from buyers to sellers. That equals about $5,300 to $10,600 for every home bought during the 34 months the tax credit was in effect. Did you take advantage of the home buyer tax credit or waited for 2012 to buy your dream home? If you just bought your new house and are looking to move into it hassle-free, call the local Raleigh movers for a professional move at an affordable price. We're backed by the All My Sons Moving and Storage moving company and four generations of movers so you have nothing to worry about.