We all know the $8,000 Federal Tax Credit for First Time Buyers expires on November 30, 2009 and if you didn’t know, now you know! If you are looking to take advantage of this tax credit you MUST close escrow on the property by November 30, 2009. Meaning you need to be in escrow ASAP!
There are whispers about the tax credit being extended after the new year and even being increased to $15,000 for ALL buyers but again, those are just whispers. A friend of mine sent me this article regarding those whispers and I would like to know what you think.
“Extension and Increase to the Federal Tax Credit for Home Buyers Could Stabilize the Housing Market
Today at 1:05pm
First Indicator of Potential Stabilization According to RIS Media, “contract activity for pending homes sales has risen for six straight months.” The Pending Home Sales Index is showing its highest numbers since June 2007. Second Indicator of Potential Stabilization The National Association of Realtors® is estimating about 350,000 in additional sales from 1.8 to 2.0 million first-time home buyers, thanks to the Federal Tax Credit of $8,000. What Does This Really Mean? The progress is encouraging, but there needs to be a little more tweaking to the Federal Tax Credit offered, to put the real estate market back on solid ground. The National Association of Realtors® is encouraging Congress to extend the Federal Tax Credit until 2010. Also on the table is an adjustment to the tax credit criteria to include all home buyers, not just first-time home buyers. This would open the tax credit opportunity to anyone interested in buying a home, leveling the playing field and bringing in many more sales to get the momentum of the market moving, consistently, forward again. An increase to the tax credit value to $15,000 would reinforce the ability for many potential homebuyers to sign on the dotted line this year. With current projections a revival o the housing market by the second quarter of 2010, now is the time to lay the groundwork to give the solidifying housing market the rock-solid base it needs to stand on its own by then.”