The real estate industry is justifiably worried about what will happen to home sales if the $8,000 credit for new home buyers is allowed to expire on Dec. 1. After all, car sales plunged when the Cash for Clunkers program ended. Realtors have been lobbying pretty hard to extend the credit and broaden it to all home buyers.
Realtor.com just came up with a list of houses you can buy for $8,000. The site says there are about 200 such listing nationwide, of the four million the site tracks.
Such properties will likely need work. And closing costs will be about $2,500, but that shouldn’t be a deal breaker. Look at that five bedroom, bank-owned beauty in Detroit up above! At 2,000 square feet that’s $4 a square foot, land included. Come on, someone’s going to make money on that.
ADDENDUM: Some astute readers noted that Realtor.com got a little ahead of itself in compiling the list. The tax credit is 10% of the purchase price of the home up to a maximum of $8,000. So for an $8,000 house, the credit would only be $800.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.