The National Association of Realtors recently estimated that the $8,000 first time buyers tax credit will create 350,000 additional sales (sales that would not have happened but for the tax credit) this year.
Calculated Risk breaks down the numbers further to estimate the cost of each additional sale:
“With 1.9 million first-time buyers, the total cost of the tax credit will be $15.2 billion. Divide $15.2 billion by 350 thousand, and the program cost $43.4 thousand per additional buyer. The actual number could be much higher if there were fewer additional first-time buyers than the NAR’s estimate – or if the overall cost is higher (more buyers claiming tax credit.)”
Numbers like this will be used to argue against extending the stimulus beyond the Nov 30th deadline, so aspiring homeowners may want to get while the getting is good. More information on the first time buyers tax credit can be found right here.