“There are so many sales that are scheduled to close by June 30 that are just not going to happen,” Jensen said. “The banks and title companies are overwhelmed with the response to the tax credit, so I believe the extension will give us until September 30 to get those sales closed. So, I expect we’ll continue to see an upward trend through the summer months.”
The federal tax credit program provides up to $8,000 to first-time home buyers and $6,500 to “move up” buyers. The average sales price of homes in Iowa last month was just over $140,000.