Tax Credit to 1st Time Homebuyers

The new tax credit in the stimulus bill expected to be signed this week will do little to boost the real estate market.

It allows first time home buyers to deduct 10% of the purchase price, up to $8,000.00, from taxes owed. While this will benefit some, my experience with first time home buyers is that the majority receive a refund. The headline sounds good, but in my opinion will do nothing to increase home sales.