Homebuyer tax credits a welcome boost
| Friday, Apr 03 2009 12:04 PM
Last Updated Monday, Apr 06 2009 07:01 PM
On the Web
For information about the state’s $10,000 new-home tax credit, go to the California Franchise Tax Board’s Web page www.ftb.ca.gov
The National Association of Home Builders, at www.nahb.org, has user-friendly information about the $8,000 federal tax credit.
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Local builders and sellers say a pair of new tax credits for homebuyers helped boost sales last month.
"I sold three brand-new Lennar homes in March," said broker Louise Juracek of Coldwell Banker America West.
All three buyers had been looking a long time -- one for two years -- and the credits were "very much part of them getting off the fence," she said.
The state's $10,000 tax credit for new-home buyers took effect March 1. An $8,000 federal tax credit for first-time buyers, part of the stimulus package, can be applied to homes bought in the 2009 calendar year.
Qualified buyers can get both credits.
Carrie Williams, general manager of the Bakersfield division of San Diego-based builder Corky McMillin Cos., said local sales doubled in March compared to February.
The new-home credit, in particular, helped move higher-end homes, she said, but the credits helped out at all of the company's seven active tracts here.
With a number of favorable factors in play for a sales uptick -- low interest rates, lower prices and nice spring weather -- it's hard to pinpoint exactly how much difference the tax credits are making.
But more shoppers know about them now than a month ago.
"As time goes on, we're seeing more and more people mentioning them," said Gary Grumbles, president of Miami-based Lennar's Bakersfield division.
The state Franchise Tax Board's most recent report shows as of March 25, 1,710 buyers had applied for the new-home credit, requesting nearly $17 million in claims.
The program was allotted $100 million, though industry proponents are trying to increase the allocation.
Dave Packer, a custom homebuilder at the high end of Bakersfield's market, said the last weekend in March was probably his best in six months.
It wasn't just because he sold a spec home, Packer said.
He also noticed the increased traffic -- 20 visitors to the model home, double what it's been lately -- also brought higher-quality shoppers. They asked good questions. They came back for second looks.
For his customers, the new-home credit isn't a make-or-break element.
But it's "a bonus," he said.
