First-Time Homebuyer Tax Credit Does Its Job In Chicago
November 18th, 2009 categories: Chicago Real Estate News, For Buyers, For Homeowners, For Sellers, Housing Market, Real Estate News, Taxes
I was happy earlier this month when Congress approved an extension of the $8,000 first-time homebuyer tax credit along with a new $6,500 credit for move-up buyers. That’s because the first-time homebuyer tax credit has worked, at least here in Chicago.
Chicago home sales have slowly, but steadily, risen during the second half of this year. That trend continued in the year’s third quarter, according to the Illinois Association of REALTORS®. The local trade group said that 5,821 homes sold in Chicago during the third quarter. That’s up 15 percent from the 4,947 homes that sold in the year’s second quarter in Chicago.
To me, this is proof that the federal tax credit has had a significant impact. And that impact hasn’t only been felt in Chicago. Total home sales across the country rose 11.4 percent in the third quarter when compared to the second quarter, according to the National Association of REALTORS®.
Now that the $8,000 tax credit has been extended, I expect even more first-time buyers to enter the Chicago housing market. Why not? Chicago has some great neighborhoods and amenities. And it’s blessed with a strong housing stock.
Housing here is more affordable than it has been in years. According to the Illinois Association of REALTORS®, the median sales price of an existing home – which includes single-family homes, condominiums and townhouses – stood at $230,000 in the third quarter of 2009. That’s down 20.7 percent from a figure of $290,000 in the third quarter of 2008.
If you’ve been waiting to purchase a condo or single-family home in Chicago now might be the perfect time to act. Home sales historically slow during the winter months. Sellers are often more willing to compromise on everything from prices to closing dates during this time of year.
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