My answer is a yes. Yes, our beloved Federal Government will extend the tax credit to new buyers for another year because of 2 main reasons.
- The politicians may be fools, but they are survivalists first. The economy and stock market are both trending up on some very weak data. Any blip in the economy could send them both cascading down just in time for the 2010 elections. The number one job for Senators and Representatives in their minds is to get re-elected. They will not take the risk.
- It is one of the few programs coming out of Washington that has worked right out of the box. The politicians need something to hang their hat on and the new homeowner tax credit is a success.
These self same politicians may even extend it to all homebuyers for the year or two. Not that I would recommend it, but the $8,000 largess from the federal government could end up a permanent fixture like the mortgage deduction.
The White House is considering extending an $8,000 tax credit for first-time home buyers, which has helped to boost sales by more than 1 million this year.
The credit covers up to 10 percent of a home’s price – as much as $8,000 – for first-time buyers, but sales must be finalized by the end of November. If the credit is not extended past that date, the upward trend in housing sales could be reversed, real estate agents and builders said. via Boston.com
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I–and my clients–certainly hope so.
I find it amusing how the NAR talks up how the worst is over for housing, yet they are begging DC to continue the tax credit. If housing is really recovering, why do they need the credit?
everyone hopes so. lets all hope prices stay low so people will continue to buy.
This makes a lot of sense and would continue to help the housing market.
While we're at it, lets have the federal government send "we're sorry for your pain" gift baskets to all the get-rich-quick Americans who got big liar loans and used rising home equity to indulge in new vehicles and other consumables. Why not? The auto industry and big banks got their "gifts" already. One of the responsible Americans?
Assume the position and take your medicine.
I am hoping to be a First Time Home Owner soon, but I just completed my Pre-Qualification this week. If they extended the 8,000 it would give people like me that have been struggling to reach those goals for years a change to make a sound decision and not feel like they have to be rushed into buying just anything that seems reasonable and affordable.
Your in good shape. It will be extended and raised too. You made a good choice in getting prequaled.
They have to extend this credit! I am seeing over and over again that the loan process is taking a long time. I will be purchasing a house IF the tax credit is approved if not I will have to wait for a couple of years to buy.
What ever happened with this? It was passed, right? Did it make a big difference in the housing market? My neighborhood didn't see too much from it. Informative post though, thanks!
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