Updated: 07/26/2009 11:48 PM KSTP.com | Print Story
By: Michelle Knoll

Bookmark and Share

REALTORS: Tax Credit Helps Boost Minn. Home Sales

Home sales are up in Minnesota and realtors are thanking a tax credit for first time homebuyers.

Minnesota realtors say home sales were up 20-percent this June over the same time last year.

Beth Ann Donarski had to kick the squirrels out, before she could move into her new Minneapolis home. The 28-year took advantage of the $8,000 tax credit for first time homebuyers when she purchased her home this spring.

"This house was a foreclosure so there was a lot of deferred maintenance and a lot of projects, so I took it into consideration I'd be getting a tax credit," said Donarski.

She calls the tax credit the push she needed to jump into the market, as so did many others. In the first half of this year, Minnesota reported 28,000 home sales.

"We've seen an upstart of the housing market for the first time in many many months," said Senator Amy Klobuchar, who pushed for the tax credit, targeting buyers in the middle income bracket.

Though more expensive homes sales may be sluggish, real estate experts say the tax credit does benefit all home sales.

"The advantage of first time homebuyer, for all homeowners is that it starts to stabilize values,." said Chris Galler of the Minnesota Realtors Association.

The tax credit will expire November 30, but there is much speculation it will be extended.


MORE NEWS

5:00    5 Eyewitness News Live at 5pm
5:30    ABC World News with Diane Sawyer
6:00    5 Eyewitness News at 6pm
6:30    5 Eyewitness News at 6:30pm
7:00    Lost
8:00    Lost
9:00    The Forgotten
10:00    5 Eyewitness News at 10
10:35    Nightline
11:05    5 EYEWITNESS NEWS at 11:00