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The $15,000 homebuyer tax credit, part of economic stimulus legislation adopted by the Senate, will result in nearly 500,000 additional home sales and create 255,000 new jobs in the year ahead, according to research conducted from National Association of Home Builders (NAHB).
“The tax credit will get prospective buyers back into the housing market on the day the bill is signed and stimulate activity throughout the economy,” said NAHB President and CEO Jerry Howard.
Increasing home sales, Howard added, will help to stabilize home values, slow the rate of foreclosures, and shore up mortgage portfolios held by financial institutions, all of which will bolster confidence generally and trigger even more economic activity.
NAHB estimates that the additional half million home sales will generate $12.3 billion in wages and salaries, $9.7 billion in net business income, $6.6 billion in federal taxes, and $2.1 billion in state and local taxes.
NAHB research shows that the tax credit would also result in $7.4 billion in economic activity outside the construction sector, including $4 billion in broker services, $2.5 billion in spending related to sales transactions, and $350 million in spending for property improvements.
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