In an amazing study of public uncertainness, Americans are divided on whether states should offer tax credits to incentivize home buyers to purchase a home. The new Housing Predictor online opinion poll found that almost by an identical margin respondents were unsure whether states with their troubled finances should provide tax credits to home buyers.
A $10,000 tax credit offered to home buyers in California shows strong evidence of working to produce higher home sales in the Golden State, helping to resolve the state’s massive housing downturn. The California tax credit coupled with a federal tax credit has propelled the state’s housing markets to improve the number of sales.
The poll found that 54% of all respondents feel states should offer tax credits, but the remaining 46% said tax credits should not be offered. However, since the poll has a margin of error of 4 to 5% the difference is insignificant.
Home sales have declined across the nation since the federal tax credit expired the last day of April, which was clearly shown by the monthly National Association of Realtor’s report on pending home sales. Pending sales have dropped 30% in the last month alone, according to the NAR, which does not count homes listed for sale by homeowners privately or by auction companies and many online services that represent a growing segment of sales nationally.
As homeowners try to sell their homes, many of whom are being forced out as a result of unaffordable mortgages the prices properties are selling for in most areas of the country continue to decline. Only five states have markets that are showing strength in housing price appreciation, and markets in all of those are not all experiencing inflating home values.
Should states that are suffering from the foreclosure crisis offer special state tax credits to stimulate home sales like California offers?
Yes – 54% No – 46%
To see poll previous results from last poll click here.
To see poll previous results from 2010 click here.