Analyst Sees Little Impact From Home Tax Credit

Pulte Homes Inc. is not seeing many sales as result of a federal tax credit designed to spur home purchases, an analyst wrote Friday, so its sales are therefore unlikely to fall after the incentive expires.

Last year, Congress created a homebuyer tax credit of up to $8,000 for people who hadn't owned a home for three years. It helped boost home sales last summer and fall.

Seeking to build on that momentum, lawmakers added a new credit of up to $6,500 for current homeowners buying a new place and extended the deadline to April 30.

But Citigroup analyst Josh Levin said Friday that Pulte, based in Bloomfield Hills, Mich., has "not witnessed a spike in sales from the homebuyer tax credit this spring."

That suggests the drop in new sales "may not be nearly as pronounced as some investors are expecting," Levin wrote.

Levin made his comments after meeting with Pulte CEO Richard Dugas this week.

Pulte officials, Levin also wrote, are also considering using nearly $3 billion in cash to purchase land, buy back share or reinstate the company's dividend.

Pulte shares fell 30 cents to close at $11.20.

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