Survey: End of Tax Credit Won't Deter Buyers May 4, 2010

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The U.S. 2010 Home Buyer Tax Credits expired on April 30, but this is unlikely to put off Americans looking to purchase homes, according to a survey from Prudential Real Estate and Relocation Services, Inc. The survey of 1000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

Among consumers actually shopping for homes, 65% believe that the end of the tax credits will have little or no effect on their interest in purchasing a home.

The survey reveals 46% of consumers expect real estate prices in their area to increase over the next year; 12% expect prices will decline.

In the next five years, 79% expect real estate prices to increase, with 20% expecting that prices will increase substantially.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and chief executive officer of Prudential Real Estate and Relocation. “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

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