The Real Deal Miami

Builders rush to meet tax credit deadline

June 11, 2010 02:15PM

U.S. builders are on a tight deadline to finish houses by the end of June so purchasers can get the federal tax credit of as much as $8,000, Bloomberg news reported. “We have people we need to get closed by the end of the month,” said Eric Lipar, CEO of Texas-based LGI Homes. “There is a sense of urgency.” Buyers had to sign a contract by April 30 and must complete the
transaction by June 30 to qualify, which means speeding up a construction
process that for some builders can take five to six months for a
single-family home. Senator Harry Reid proposed a three-month deadline extension yesterday amid concern that a rush of buyers created too big of a backlog. New-home contracts rose 30 percent in March and 15 percent in April, the biggest two-month gain on record dating to 1963, when the Department of Commerce began tracking contracts. Builders are also snapping up workers to help meet the deadline, Bloomberg said. [Bloomberg]