In the United States, the GDP recorded 3.5% growth in the third quarter – for the first time in a year. Similarly, the once-ailing housing market has shown big improvements since last winter. Is our southern neighbour really waking up?
Right now, the U.S. real estate market is working with 7.5 months’ supply of inventory. This sounds like quite a lot, but compared to January’s 12.4 months’ supply, it is a great improvement. Eyes of all real estate experts (but also potential buyers) are now on one thing – the first time home-buyers’ tax credit.
The opportunity to receive an $8,000 tax credit (or even cash back, if the recipient’s income tax doesn’t reach this level) has been a strong stimulant for the US real estate market. But as the expiry deadline for this special offer comes closer, market watchers are becoming nervous. What will happen once the tax credit is no longer available?(Will a Tax Credit Extension Help the U.S. Market? continued...)