Realtors: Tax Credit a Dud This Year

The homebuyer tax credit has been a dud so far this year, but the National Association of Realtors is hoping it will kick in this spring and drive home sales higher before it expires at midyear. When the tax credit was due to expire in November, the rush by new first-time homebuyers to meet the deadline pushed November sales 45% higher than a year ago. "We would anticipate that April, May, June home sales figures will be high if there is a similar buying pattern as last year," said Lawrence Yun, chief economist for NAR. But so far the extension of tax credit by Congress has generated only a modest increase in foot traffic, he told reporters. And the expansion of the tax credit to existing homeowners or repeat buyers has not generated much excitement either. "Right now there is nothing to indicate we will get that 40% kick" in May or June, Mr. Yun said. "But we are keeping our fingers crossed."