US First Home Buyers Tax Credit ends in a Bang

Sales of existing homes in the United States fell 16.7 per cent in the month of December, the biggest monthly drop in 40 years.

American First Home Buyers were eligible for a Tax Credit of up to $8,000 which was due to expire on the 30th November 2009, however Congress decided to extend the grant to April 30th and bolstered it to include a $6,500 credit for existing buyers.

Despite the extra interference from Congress, the rush to qualify for credit ultimately resulted in the crash wiping off the 4.9% gains made in the year.

The Australian Government has made no indication yet that it will extend the First Home Owners Boost, which expired on the 31st December.

ยป Existing home sales plummet 16.7% in December – Market Watch, 25th January 2010.