Status of the $8k First-Time Homebuyer Tax Credit

With the November 30th deadline quickly approaching the fait of the $8k first-time homebuyer tax credit is still looming. With all the activity that the tax-credit is responsible for how could the current administration not extend it or open it to more than just first-time homebuyers. Easy according to opponents, there are a lot of pressing economic issues including talks of another stimulus package.

With record low interest rates, low prices its easy to assume that we can do without an extension on the tax credit. So with less than a week left to lock in a deal that will allow you to close a your transaction and take advantage of the pure $8k tax credit are you willing to risk it?

I’ve noticed as I just went through the home currently available thier are a lot of families that are not willing to risk it and are locking in deals right now. Out of the 20 homes that I’ve kept an eye on over the last month I will estimate that 10, if not more, of them have had a smart family’s lock up a contract on them and have them pending inspection within the last week. These homes and condos fall within the price range of a first-time homebuyer.

Another home that I have a client looking at in the morning got an offer on it today. Let the games begin, multiple offers come in and the mad rush begin. It reminds me of the stories that you here about or watch on the news regarding the day after Thangiving sales. People are getting trampled and smothered trying to get their hands on that prized electronic or in this case its that house or condo that has the price tag as if it were 2004.

According to the article written by Jeanne Sahadi, a senior writer at CNN.Money.com, “While momentum is building on Capitol Hill to extend the $8,000 first-time homebuyer credit, President Obama’s housing secretary said Tuesday the administration has not decided whether to support its expansion.

Housing Secretary Shaun Donovan told the Senate Banking Committee that the administration wanted more time to better assess the cost of the credit, which expires on Nov. 30.

“Within a few weeks we’ll have sufficient data to get to a conclusion on this,” Donovan said. “It’s a question of understanding more fully the costs to the taxpayer.”

He said there is “clear evidence” the credit has had some positive benefits and that its expiration could have “some negative implications” for the housing market.

At the same time, Donovan said that the end of the credit would not be “catastrophic” because of other actions the government is taking to support the flagging housing market. Interest rates are being kept low and the Federal Housing Administration is playing a more prominent role in lending to homebuyers.

But lawmakers pushing to extend the credit are concerned the housing market is going “to die a sudden death” after Nov. 30, as Sen. Johnny Isakson, R-Ga., said Tuesday.

Isakson and other supporters believe that keeping the credit in place could further boost home sales, stabilize housing prices and generate jobs.

Isakson and Senate Banking Chairman Christopher Dodd, D-Conn., have co-sponsored an amendment that would extend the credit until the end of June 2010 and be available to single filers making up to $150,000 and joint filers making up to $300,000. Currently the credit is limited to homebuyers who haven’t owned a home for the past three years, who make half those amounts and who close on their purchases by Nov. 30.

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One Response

  1. […] reading here: Status of the $8k First-Time Homebuyer Tax Credit Posted in Home Insurance | Tags: 30th-deadline, activity, current, fait, interest-rates, […]

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