Coldwell Banker Real Estate Study Finds Consumers' Anticipated 'smart Spending' Of Homebuyer Tax Credit Will Aid Economic Recovery
83 Percent of Current Homeowners Surveyed Say They Would Spend Tax Credit on Repaying Existing Debts, Home Improvements, Savings/Investments and Household Expenses
December 16, 2009 // Franchising.com // PARSIPPANY, N.J. – Coldwell Banker Real Estate LLC today announced the findings from a new survey that looked at how the recently expanded federal homebuyer tax credit, which opened up the credit to existing homeowners, might impact the economy. Of the more than 1,000 homeowners surveyed, 83 percent responded that if they were to purchase a home and qualify for the tax credit, they would engage in "smart spending" or put the money toward paying off existing debts, home improvements, savings/investments, or everyday household expenses. Only 6 percent of respondents indicated that they would spend the money on what are commonly referred to as luxury items such as a vacation or a shopping spree.
According to the survey, the top way homeowners would spend their $6,500 tax credit in a "smart" way would be to pay off debts (34 percent), followed closely by making home improvements (29 percent) and putting it into savings and investments (28 percent).
In addition, Coldwell Banker Real Estate found that 20 percent of homeowners indicated they were more likely to consider purchasing a home than they were six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously only was for first-time homebuyers, is now available to existing homeowners who sign a binding contract before April 30, 2010 and close on the purchase of a home before June 30, 2010.
"I was fortunate enough to visit Capitol Hill and speak with legislators prior to the extension and expansion of the first-time homebuyer tax credit in November, and I congratulate Congress and the Administration on the passage of the 'The Worker, Homeownership, and Business Assistance Act of 2009'," said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. "The National Association of Realtors recently reported that 47 percent of 2009 home sales were to first-time homebuyers, so clearly the initial tax credit worked. Our survey offers positive indicators that there are more existing homeowners considering a home purchase today than there were six months ago, and the majority of respondents say they would engage in 'smart spending' that would directly benefit the U.S. economy."
Methodology: Coldwell Banker Real Estate engaged ICR, an independent research company, to conduct an omnibus survey via telephone in November 2009, among a nationally representative sample of 1008 homeowners. The margin of error for total respondents is +/-3.09% at the 95% confidence level.
About Coldwell Banker®
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.