Homebuyer tax credits are set to expire April 30 at midnight. The incentives range from $6,500 to $8,000 for new and existing homeowners.
Austin realtors say they are flooded with clients looking to cash in on the tax credits.
James Craig toured more than a dozen homes in Cedar Park and Austin to find the right fit for his family. They are moving from California this summer for his job.
“We are looking for a great community, a great place to raise our kids. My wife is dead set on a pool,” said Craig.
Craig is working with Austin realtor Kenn Renner to sort through the listings. If he finds a home in time, Craig will qualify for a $6,500 tax credit for existing homeowners.
“In order to meet my move date in July, I need to buy a house in the next two weeks. So why not try to close the deal quickly, because you’ll get $6,500,” said Craig.
Realtor Kenn Renner says buyers must have an executed contract by April 30. However, June 30 is the required closing date.
“There’s a lot of pent up demand. A lot of people put off their buying decision. We’ve seen a lot of homes come on the market, but we’ve seen a lot of homes sell too,” said Renner.
The Austin Board of Realtors says Austin home sales jumped 27 percent in March 2010 compared to a year ago. Condo and townhome sales jumped 129 percent during the same time.
“The market had bottomed out the early part of 2009, but as we started recovering the tax credit really stimulated the market especially in the entry level price range,” said Austin Board of Realtors Chairman John Horton.
The IRS says 1.8 million Americans have taken advantage of the tax credits so far.
Taxpayers who make a qualifying purchase in 2010 have the option to claim the tax credit on their 2009 or their 2010 tax return.
