Obama Tax Credit Drives South Florida Residential Sales

Prompted by the $8,000 Obama tax credit incentive, more than 86 percent of the nearly 16,000 residences under contract in South Florida as of July 27 are priced at $350,000 or less, according to a new report from Condo Vultures® LLC.

Discount buyers, many of which are purchasing for the first time to take advantage of the federal money, have entered into contracts to purchase 13,726 residences priced under $350,000 in Miami-Dade, Broward, and Palm Beach counties, according to the report produced using Florida Association of Realtors data.

"President Obama's tax credit for first-time home buyers is having a strong impact on the South Florida housing market," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®. "Many buyers who had been waiting on the sidelines are actively in the market right now in hopes of purchasing a place before the program expires. In many cases, the demand for correctly priced residential product is so strong that sellers are receiving multiple offers from qualified buyers."

First-time home buyers who close on a home before Nov. 30 can apply for a $8,000 federal tax credit that need not be repaid as long as single-family house, condo unit, or townhouse remains the purchaser's primary residence for 36 months, according to the Internal Revenue Service's Form 5405.

Individuals in the market today are encouraged to attend tonight's free Condo Vultures seminar entitled First-Time Home Buyer Dos and Don'ts from 5.30 pm to 8 pm July 28 at the Doubletree Grand Hotel in Greater Downtown Miami. Registration is required.

A huge crowd is expected to turn out for an all-star panel of experts who will discuss what every first-time home buyer needs to know before purchasing a deeply discounted residence in South Florida.

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Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or our Video Gallery. Interested in buying multiple units from developers or banks? Be sure to visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ and Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.

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