The looming tax deadline led many first-time homebuyers in Baltimore to sign a contract by the end of the month and close by the end of June to qualify for tax credits up to $8,000. That added pressure raised March home sales 17 percent from March 2009. Deals that will soon become settled sales went up nearly 40 percent as well.
The $6,500 credit for repeat buyers hasn't been as motivating as the first-time incentive, experts say. Prices have dropped so low that sales are picking up. Twice as many homes were sold in March 2005 as in March 2010, but 250 more homes were sold this past month than in March of last year. The original November deadline was extended to give more people a chance to purchase homes, but experts are confident that the deadline is solid now.
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