The D.C. $5,000 first time homebuyer tax credit was not renewed for 2012 tax year, meaning new homeowners debating whether to buy this year lost that incentive to purchase a home. However, this year’s low interest rate climate still offers new homebuyers the same encouraging mortgage environment as established homeowners looking for a new purchase.
The D.C. $5,000 First Time Homebuyer Tax Credit has been offered to D.C. residents for the past 15 years to help make home buying more affordable. But this year, the D.C. $5,000 First Time Homebuyer Tax Credit was not included in the American Taxpayer Relief Act that President Obama signed recently. The credit began in 1997 and had been renewed each year since. But now, anyone who purchased their homes in 2012 will not be able to include the D.C. $5,000 First Time Homebuyer Tax Credit in their 2013 tax filings.
Still, the District’s housing market has plenty of other factors driving its health right now. Inventory levels are at record low levels while demand for new homes is increasing. This low-interest environment is inspiring many homeowners to take advantage of interest savings by making purchases sooner rather than later. Even new mortgage rules that have tightened lending standards seems to have had little effect on the District’s strong housing market.
Many home buyers have been taking advantage of the D.C. $5,000 First Time Homebuyer Tax Credit, according to an article by The Real Estate Settlement Observer. The D.C. $5,000 First Time Homebuyer Tax Credit actually inspired the legislation that offered a similar $8,000 tax credit to first time homebuyers in 2008, 2009 and 2011. Homeownership rate in the District seems to have responded well to the D.C. First Time Homebuyer Tax Credit as homeownership here increased to 42.8% in 2010 from 28$ in 2000.
Rock Creek Realty: http://www.rcrdc.com/
The Real Estate Settlement Observer: http://www.federaltitle.com/blog/5000-dc-homebuyer-tax-credit-not-renewed-for-2012