For those who haven’t heard, the first-time home-buyers tax credit of up to $8000 has been extended until Spring of 2010. To qualify for the credit, home-buyers must have a house under contract by April 30, 2010, and close on the property by June 30, 2010.
Additionally, the credit has been expanded to including some current home-owners who are buying a new home, as well. Specifically, anyone who has owned his/her own home for at least 5 years and is purchasing a new home is eligible to receive up to $6500 in tax credits.
For those interested, more details are in this news release…
I’m very curious to see the impact this extension has on the market. Over the past two months, we’ve seen a huge surge in activity, both in terms of selling our houses and trying to buy new houses. We’ve sold all but one of the houses we have on the market, and we’ve had difficulty buying new houses due to all the competition from owner occupants looking to take advantage of the credit.
I assume that things will slow down over the winter, but given the extension expire in April, I have a feeling there will be another buying frenzy in Spring for those who missed the deadline this time around.
We’ll certainly be trying to stock up on properties between now and then, and hopefully we’ll be able to capitalize on next tax credit deadline when all the buyers are out looking to buy their new homes…
Is your first paragraph correct?
To qualify for the credit, home-buyers must have a house under contract by April 30, 2010, and close on the property by June 30, 2008. <=== (2008)
Excellent. Just what we need. More wasted tax payer dollars to create the next bubble. When will this madness end?
Chuck –
Whoops! Thanks for the correction…it should be June 30, 2010…I’ll update that now…
Bobby –
As an investor, I’m not too unhappy about the tax credit extension (it will help us)…
But, as a citizen, I agree that from a macro-economic perspective, it’s a horrible, horrible decision…
you right things will slow down now for the holidays but buy now fix up ready for spring. my plan it to have 2 house ready before the deadline
chris
I couldn’t agree more – this will be very good for investors, and very bad for our economy in the long run. It’s more messing with the natural way things should happen. But all these guys really care about is getting re-elected it seems, which is why they’ll take a short term win over long term any day.
…jp