It appears the First-time Homebuyer Tax Credit is making a difference in boosting homeownership.  Results of a recent survey also point to low home prices and low interest rates as strong contributing factors.

The Results Are In

According to a Wells Fargo Home Mortgage survey, the tax credit has palyed an important role in the decision-making process for the first-time homebuyers.  Awareness of the tax credit is extremely high- at 94% for first-time homebuyers and 72% for renters who intend to purchase.  Survey results shoe the tax credit also has impacted:

First-time homebuyer's' decision to purchase a home

  • 56% cited the tax credit as a key factor in their decision
  • 74% said low home prices were the reason
  • 66% attributed their decision to low interest rates

Renters who intend to purchase their first home within six months

  • 72% cited the tax credit as a key deciding factor
  • 84% said low home prices were the reason
  • 74% attributed their decision to low interest rates

The tax credit also influenced the price of the homes purchased for 50% of first-time homebuyers and 57% of those renters who intend to buy.  It gave them the ability to increase their price range.

Survey findings also indicate the majority of first-time homebuyers plan to put their tax refund money back into their homes- with 56% using it for home improvements and 47% using it for home-related purchases.

Fargo, Wells. "First-time Homebuyer Tax Credit Positively Influences Home Purchases." Connect for Success 2: 2. Print.