There is no doubt that the $8000 first time homebuyers’ tax credit has helped many all over the US fulfill their dream of homeownership.  According to the California Association of Realtors, in August of 2009 home sales increased by 9% in California compared to the same period of time last year.   Although it is hard to attribute the increase in the sold number of homes solely to the first time homebuyers’ tax credit, it is fair to assume that the $8000 tax credit had a huge impact on the Real Estate market.  Nevertheless, I truly believe that pumping money into an economy that is experiencing a monthly increase in unemployment is merely a band-aid.

In Ventura County, like the rest of the country, the idea of receiving $8000 from the Federal Government was widely received and many homebuyers outbid each other in order to secure a home and the subsequent tax credit.

2009 is not over yet, having said that, a few days ago as I was searching the Ventura County Regional Data Share for new listings I noticed a few of the 2009 purchased homes back on the market for sale and listed as Short Sales, amazing I know!!!

Unlike the early 2000s, the mortgage guidelines are so strict now that we can hardly blame the mortgage industry for the loss of these homeowners’ kingdoms.   One can only assume that the owners of these newly short sale homes lost the means to pay their monthly mortgage.   And we are back again to the unemployment issue.

Although many trust that the benefits of the $8000 tax credit by far outweigh its negative impact, I tend to view the benefits as only a small part of the solution.  Without jobs, no matter how many tax credits are issued to the American people, mortgages will still default and the real estate market will continue to fall.

I look forward to hearing what you have to say with regard to the first time homebuyers’ tax credit.