In my April 23rd blog, I talked about how CAR was predicting that the $10,000 California homebuyer tax credit wouldn’t last long.  Officials are saying it appears the credit, which caps at $13.3 million, will run out as soon as next month, right in line with the original estimates.  The state is predicting that, “17,500 first-time homebuyers will receive tax breaks averaging about $5,700 apiece over three years.  An additional 14,000 buyers of new homes will get three-year tax breaks totaling about $7,000 each.”  Since May 1st, nearly 2,500 people have applied for the tax credit.  Just last week there were 2,040 applications.  In fact, the pending sales of existing homes are running about 20% ahead of what is was this time last year.  Leslie Appleton-Young, chief economist for the California Association of Realtors, referred to the tax credit saying, "People respond to financial incentives. Absolutely, it's going fast."

For more information, visit: http://www.sacbee.com/2010/05/18/2757562/homebuyers-rush-to-claim-state.html#ixzz0oaaPyie8