California has one of the most trouble housing markets in the country. Along with that the State of California, which is responsible for 13% of the United States gross domestic product or GDP, is also facing a $26.3 billion budget deficit for the 2009-2010 budget year.
But in an effort to revive the lagging real estate market, the state of California is ready to offer homebuyers up to $10,000 to stop waiting and go ahead and buy a house. $200 million has been set aside for the program and it will be split between first-time buyers of existing homes and new units. The program begins on May 1.
The Federal program of $8000 ends on June 30 and contracts must be written prior to April 30 with a closing by June 30. The California program is for closings that happen after May 1. So for a short window during May and June, homebuyers in California may take advantage of both the Federal program and the State program, thereby getting a windfall of $18000 in homebuyer credits.
Hopefully this can benefit many people and give the state of California a much-needed economic boost.