First-Time Buyer Tax Credit Extension Possible

Just ran across this article on Realtor Magazine. Hope the House and Senate will take this seriously!

Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney

First Time Home Buyer's Credit

The $8,000 first time home buyer's credit has had a major impact on the real estate industry. A major part of the increase in home sales can be attributed to these buyers over the past several months. This credit is scheduled to end in just over 90 days. Wondering if this is going to create a buying frenzy similar to the cash for clunkers program? Hope the first time buyers do not wait till the last minute and not be able to close in time to take advantage of this basically free money. Also wonder if many potential sellers of lower priced homes are missing out on a great opportunity to get their home sold quickly.

The Home Builders Association is pushing to have the credit extended into next year and even expand it to all buyers. This would really be a stimulus that could help everyone!