Should Homebuyer Tax Credit Be Extended Yet Again?

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February 28, 2010

Should Homebuyer Tax Credit Be Extended Yet Again?

Word on the streets is that the National Association of Realtors (NAR) is again lobbying lawmakers to extend the $8,000 first time home buyer tax credit until the end of 2010.

But, Senator Johnny Isakson, former real estate agent and last year’s advocate for the 2nd extension, is not on board.  Last November, Linda Goold, NAR’s director of tax policy practically told the public and Realtors that the second tax credit extension would be the last one.

Can the government afford to extend the tax credit for a third term?  Where are we getting all of this money since are deficit is at a record high level?

If the government extends the tax credit for a third time, it will help the real estate market.  But, when the credit was extended in November, many buyers went “back on the fence” knowing that they had more time to purchase and still receive the $8,000 tax credit.  Sales in November to February have been slow as buyers have more time to wait.

If the government announces that there will be no further extension, then there will be a strong urgency for potential buyers to purchase properties by the March 31st deadline!  Please read my article on the tax credit guidelines by clicking:  FHA Mortgage Guidelines Will Tighten In The Spring

As FHA mortgage guidelines tighten in the Spring and Summer of 2010, the tax credit extension could certainly help the market for the long run!  We here at the Parkland Parrot will keep you posted as soon as new information is supplied to the real estate community.

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