A record 844,000 prospective home buyers visited a web site called FederalHousingTaxCredit.com in February to learn about the new $8,000 tax credit for first-time home buyers that was enacted last month as part of the landmark $787 billion economic stimulus package.
www.FederalHousingTaxCredit.com showed a spike in traffic on its web site which real estate brokers are hoping that this is a strong indication that the tax credit will help get some fence sitters into the market and will help breathe some life back into the housing market.
While real estate brokers are disappointed that the tax credit was not larger and was not extended to all home buyers, Congress did make it a true tax credit. Unlike the credit that was enacted in 2008, it does not have to be repaid.
Daily site traffic at www.FederalHousingTaxCredit.com started building in the week before the economic stimulus legislation was enacted, and peaked at almost 59,000 on Feb. 18, the day after the legislation was signed.
National Assoc of Home Builders think that the tax credit will result in about 160,000 additional home sales in 2009.