State legislators recently began considering a law that would give buyers an income tax credit worth $15,000 or 5 percent of the home purchase price, whichever is less. The state Assembly approved that measure late last month. If it is passed, the credit would be distributed over a 3 year period on a 1st-come, 1st-serve basis. Under the proposal, $75 million of the credit is reserved for new construction while $25 million is set aside for buyers of existing homes.
Jeffrey Otteau, president of the Otteau Valuation Group, said about a fourth fewer buyers signed contracts for real estate in the state last month compared to a year ago.
“We had a full year of improvement in housing, so that means that today’s buyers, (potential homeowners) can’t get the same deals they could get six months ago,” Otteau said. “What buyers are saying is that the economy isn’t good enough for me to go forward without a tax credit.”
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