The $8,000 federal tax credit for first-time home buyers has been a boost to the local market. Salt Lake has seen the number of home sales this summer on par with last summer. Without first-time home buyers jumping in, we could have seen fewer sales and prices falling further than they have. The majority of my activity has been by people taking advantage of this credit.

So if you still have not taken advantage of this credit, you have until December 1st to close on the property. That means you would will want to have your home picked out by mid October so you can close mid November just in case you need a few extra days to tied things up.

If you are the gambling type, you could take your time and hope H.R. 2801 passes in time. The bill extends the credit for all homebuyers through 2010. Currently the bill is in committee and it may not make it out in time for congress to vote on it in September when it goes back in session.

The bill would be a definite boost to the home market but opposition points out a few obstacles to it being passed. First, Congress is too involved with healthcare to worry about another bill. Second, the original tax credit was meant to protect buyers from future depreciation and some argue that we have already hit bottom. If that is the case, there is no need for depreciation protection. And finally, there may not be the funds for the bill.

With this type of opposition, it looks unlikely that this bill will pass. If you are thinking about buying a home in the next year, you may not want to wait any longer.

Sources

http://www.creditunionsonline.com/news/2009/Congress-Considering-8000-Fist-Time-Home-Buyer-Tax-Credit-Extension.html http://www.federalhousingtaxcredit.com/2009/index.html, WFRMLS