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Coldwell Banker Study Finds Consumers Will Spend Tax Credit Smartly

Study Finds Homebuyer Tax Credit Will Be Spent Wisely.

Coldwell Banker Real Estate recently released findings from a new survey reviewing how the expanded federal homebuyer tax credit, opening up the credit to existing homeowners, might impact the economy. Of the 1,000+ homeowners surveyed, 83% indicated 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% of respondents revealed that they would spend the money on 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 smartly would be to pay off debts (34%), followed by making home improvements (29%) and putting it into savings and investments (28%).

Coldwell Banker also found that 20% of homeowners indicated they were more likely to consider purchasing a home than six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously was only for first time homebuyers, is now available to existing homeowners who sign a contract before April 30, 2010 and close on the home before June 30, 2010. To learn more about the details of the expanded homebuyer tax credit visit www.coldwellbanker.com.