With four generations of experience as master planners and builders, along with many successful residential and commercial communities to their credit, J.S. Hovnanian & Sons has proudly earned the trust and respect of thousands of Delaware Valley families.

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Builders: First-time homebuyer tax credit 'extremely positive'

'The state’s homebuilders say the federal first-time homebuyer’s tax credit is helping drive traffic to their residential developments, with more sales expected as the Nov. 30 deadline to apply for the credit approaches.

“We’ve definitely seen an increase in traffic, and we’ve definitely seen an increase in sales,” said Tamar Hovnanian, marketing relations manager at J.S. Hovnanian & Sons, a Mount Laurel-based homebuilder. Since the tax credit was announced in January, traffic from prospective buyers has increased 32 percent, she said.

Three of the eight J.S Hovnanian communities currently open for sale have the target market that would qualify for the $8,000 tax credit, Hovnanian said. One in particular, a townhome community in East Greenwich called Mews at OakRidge, has made 12 sales this year, 10 of which were to first-time buyers. The other two communities, made up of single-family homes, also have sold to first-time homebuyers, but not at the same level, she said.

“Overall, it’s been extremely positive, and it’s helped people get back in the market,” said Hovnanian, who saw sales begin to pick up significantly about five months ago. In the last month, however, demand has slowed with news of a possible extension of the tax credit deadline, she said.

Still, Hovnanian has built up its inventory with the anticipation that more people will be looking to make a purchase in September and October. Although the homebuilder has traditionally waited until a building was 50 to 60 percent pre-leased before starting construction, the company has gone ahead and put up some properties in anticipation of sales in the coming months, she said.

One concern some buyers had was that a home wouldn’t be completed in time for them to close on the purchase by the Nov. 30 deadline, Hovnanian said. But the builder has come up with a tax credit guarantee; if the company is responsible for a home not being delivered in time for the deadline, they will pay the homebuyer $8,000, she said.'

Credit: Evelyn Lee

 

 

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