Government incentives led to increased interest in home construction in Allen County and created optimism in the housing market, real estate experts said Thursday.
The 679 building permits issued in 2009 represented a 9.3 percent increase over the 621 issued in 2008, said Maurine Holle, executive director of the Fort Wayne Home Builders Association.
Builders received 51 permits in December 2009, compared with just 18 permits issued in December 2008.
“We’re happy to be going in the right direction,” she said.
“Pretty much the government’s first-time homebuyer effort helped and interest rates are still so low.”
Prospective homeowners have until the end of April to make a purchase. The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for people buying their first principal residence.
The law also authorizes a tax credit of up to $6,500 for qualified repeat homebuyers.
“The program made a lot of people get off the fence,” Holle said, “and now that it has been extended to April” more might make a move.
Meanwhile, existing home sales in the county were about the same last year as in 2008. Based on figures as of Thursday, home sales rose slightly to 4,203 from 4,199 in 2008. Fort Wayne Area Association of Realtors spokeswoman Kim Ruffin also attributes the activity to government incentives.
The association continues to compile year-end totals, she said.
Real estate agent Roderick Phillips said the sales uptick doesn’t surprise him. But after the incentives are gone there might be a lull, he said. “The bottom line is that the people who want to buy homes are going to buy homes, even though credit has tightened up.”
The housing market “will come back pretty strong,” said Phillips, owner of Phillips Team.
