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A Weichert survey shows that 92 percent of real estate agents
expect
the market to decline if the current tax credit is allowed to expire --
Of the nearly 1,000 agents surveyed in a
study conducted by Weichert, one of the nation’s largest independently-owned
real estate companies, 71 percent reported that the $8,000 tax credit was the
single largest factor motivating the buyers they have worked with in 2009 far
surpassing affordable home prices (20 percent) and low interest rates (8
percent).
While the tax credit has helped stimulate
the market since being passed by Congress in February, it appears real estate
agents feel more support is needed. The vast majority of respondents (92
percent) think the market will decline if the tax credit is allowed to expire
this year. Given that expectation, not surprisingly 97 percent favor extending
the tax credit with the majority wanting to continue the credit until Dec. 31,
2010.
“The tax credit is working to restore
confidence and stimulating the overall economy but we still have a long way to
go before we return to a normal market,” said James M. Weichert, president and
founder of Weichert, Realtors. “As this survey shows, many in our industry are
concerned that we will lose much of the ground that has been made toward a
recovery if the tax credit is not extended.”
The survey further revealed that agents
think expanding the tax credit to include current homeowners would help
expedite the recovery for higher-priced homes – something that has yet to
happen as a result of the first-time buyer tax credit. Respondents felt
nearly nine times more confident in saying that we are very likely to see a
recovery in mid- to high-priced homes in the next one to two years if existing
homeowners could also receive the tax credit (61 percent to 7 percent).
Beyond aiding the housing market, the tax
credit appears to have had a stimulating impact on other sectors of the economy
as intended. Agents reported that 39 percent of buyers used the money
they received from the tax credit for renovations and remodeling while another
20 percent purchased household items such as electronics, appliances and
furniture with the financial incentive they received for purchasing a
home.
The survey also revealed that agents feel
the tax credit is vital to stabilizing the national economy. Of those polled,
84 percent felt extending and/or expanding the credit is very important in the
ongoing recovery effort.
Weichert has nearly 18,000 sales associates
in approximately 500 company-owned and franchised sales offices in key markets
throughout the
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