First time buyer’s tax credit to be extended?
August 23rd, 2009 Categories: Real Estate News, San Diego County Community News, San Diego County Fixer of the Week, San Diego county Real Estate News
SAN DIEGO- The constant chatter about low inventory in the first time buyer market has been 
overshadowed this last week by the realization that the first time homebuyer’s tax credit was approaching its expiration date. Now November 30th is still a ways off by the calendar, but in real estate ‘years’ it is appropriate to be concerned.
“an especially urgent matter if you’re a buyer just starting to shop and you see entry-level prices bottoming out or rebounding in many local markets and you want to take advantage of the credit, which is more generous than last year’s”- 08/22/2009, Washington Post*
Currently short sales are still the dominant transaction in the San Diego County real estate market and with the short sale process averaging 3-4 months, you can see why this topic has moved to the front of the line. Without an extension of the current expiration date, this is crunch time. In order to qualify for the tax credit you must have closed your transaction by 11-30-2009.
I have spent the couple weeks scouring several sources for any indicators about the future of the bill, in order to write a post and could not find anything. It’s been tough not having information for my clients. However, yesterday a story was published by *Kenneth Harney in The Washington Post that sheds some light on the prospect of an extension.
There are some very powerful Senators coming forward in favor of an extension and the chairman of the Senate Banking, Housing and Urban Affairs Committee, Senator Christopher Dodd is co-sponsoring a bill that would not only extend the bill it would raise the credit maximum to $15,000.
“In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don’t bank on a bigger credit, however, or on a broadening of the concept to cover all buyers next year. “*
I have written in a couple posting here that low interest rates and the tax credit will be key to our real estate market’s health and recovery as more distressed properties come on the market in the future. Without these key pieces of the puzzle, I feel the momentum gained will be quickly reversed.
If you have been thinking about purchasing your first home, give me a call @ 760-415-3329. We look forward to working with you.
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There is some good info here for first time buyers, I wonder if you might be able to find some other tips to share at http://www.firsthomeexperience.com/main/. If you have a chance could you take a look at let me know what you think?
Thanks
Comment by Erin — October 14, 2009 #