Last March in California, a $10,000 tax credit was enacted for homebuyers who purchased new construction homes in an effort to stimulate the housing market and help developers that were stuck with a glut of inventory on their hands. The state allocated $100,000,000 for the program. It was a huge success. It was too popular in fact, because 4 months later, the fund ran out.
A new bill has been introduced in the California State Senate that would reintroduce this tax credit incentive as early as May 1st, coinciding with the end of the Federal first time homebuyers tax credit that ends April 30th.
With resale homes getting absorbed at rapid rates, many buyers are turning to new home sales which can offer great incentives from the developers like credits for upgrades, waiving Home Owner Fees for a given amount of time, major price reductions, and more. If the state tax credit gets a new lifeline, so will developers of new homes, and homebuyers alike.
Stay tuned for more information on the California State Senate’s $10,000 tax credit for new home sales.
Visit us online at HomeReach.com to view all San Diego homes for sale.
David Tal
Broker/REALTOR®/President
mobile: (619) 955-7706
efax: (619) 872-2471
Tags: david tal, real estate tax credit, san diego
