I have still been getting a lot of calls and emails about any extensions being made by the federal government concerning the Eight Thousand Dollar Home Buyer Tax Credit. As of April 30th the Tax Credit is done–for now.
I say “for now” because you never know what’s going to happen a few months or years down the road. Results on the tax credit helping to stimulate the housing market have been in for a while: yes, it did help. But at what price?
Billions of dollars have been passed out to help incentivize home ownership in America over the past few years. All done in an effort to help cushion the fall from the largest over-inflation of U.S. home prices in the last 60 years.
So, the question on every first time home buyer’s mind is: will they extend it again?
It’s tough to say, but I would guess for the time being they will not. Unless things start going south again in the housing market (and there are those that feel this will happen over the next 2-3 years) I think the government and IRS will try to start easing their way out of this section of the economy. There has been some “stabilization” in many areas of the country and right here in MN, but those people thinking we are going to see a return to the 2000-2005 appreciation rates are truly kidding themselves.
Like always, real estate is a very local market, and you should always talk to a Realtor, Mortgage Lender, and Title Company before diving in too far. These people are in business to help you navigate one of the biggest transactions of your life, so don’t take the Do-It-Yourself approach, especially not with your first home.
And for all those waiting for the 8 grand tax credit again…well, there are a lot of other reasons to buy now rather than wait and see. Interest rates, home prices, and local grant programs are just a few of them. Remember–those that make money in real estate buy low and sell high. You can be certain we’re not at a “high” point right now, so if you wait until things pick up again you may have lost your opportunity to score big.
You’re hearing this too, huh? I think many people are hoping for another extension since the first credit got extended. I agree with you; I don’t think they will extend and more importantly, I agree that it is still the best time ever to buy with super low rates, great DP assistance programs. Thanks Steve for addressing this!
Steve, I am glad things have picked up in the houseing market but for those of us who scrambled to make all the deadlines of getting the contract prior to April 30th and closing by Jul 1 but still did not make it I am upset. In my case I was all set to go when my state had bad weather like snow followed by heavy rains and that pushed my close date to July 31, this was something beyond my control yet I can’t get the credit now. What can someone like me do about this. I depended on this credit to get family back on their feel after the purchase.