Finally after a year of poor news, the US have, for the third quarter, registered a GDP growth of 3.5%. Since the end of last year the property market is also showing large development.

Is the United States starting on the route to recovery? There is still a large number of property stock available, about 8 months worth. Even though this may sound alot, consider the fact that in January of this year the property stock was at a massive 12 months plus. The tax credit for first time buyers is now being watched very carefully by potential buyers and also by real estate agents.

The tax credit available has been a great incentive in boosting the US property market when possible buyers could receive up to $8,000 in tax credits or cash back. All nice things must come to an end and these tax credits are due to expire soon, leading to disquiet amongst the market watchers. When the tax credits are no longer on the table what is going to happen to the property market?

All is not lost as an extension bill for the tax credits is being written which will extend the cut off for a further year until 2010. The next step after the Senate cleared the path is for the bill to be given to Obama, probably within the next week or two. The recommendations will increase the couples income threshold to $225,000 and the extension will expire on 30 April. And that’s not all – a new $6,500 tax credit for move-up homeowners was affixed to the bill.

Passing this bill may fuel our southern neighbour’s property market enough to get through the winter, however, the question remains: how will the US federal budget sustain this hit?

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