As we're headed into fall, and the real estate market moves toward its traditional slump at year's end, those in-the-know are speculating the strength of the Vegas market from October through December.  What might be a wild card this year, and into next, is the $8,000 tax credit currently offered to first time buyers (or those that haven't owned a home in the past three years) that expires on November 30th.  This tax credit is being debated by Congress for extension into 2010, and analysts are saying it will likely be extended.  What is even more encouraging, is that the tax credit may also be offered to other buyers who have owned a home, further stimulating the real estate market.  All eyes are on Washington.

Most real estate experts agree that such an extension would continue to energize the local market, but there are some who are concerned about what that tax bill looks like to the average tax payer.  The national economy is struggling, and many people are still losing jobs - in the Las Vegas valley, unemployment is now at a whopping 13 percent.  Foreclosures in Nevada were higher than any other state in the third quarter, and show no signs of slowing.  Everyone agrees that recovery will largely be reflected in the housing market, but will additional tax credits create a false sense of security while providing a boost to the market?  Proponents say that without this government intervention, home prices will go much lower, banks will continue to lose money, and the economy will have little chance of quick recovery. 

Meanwhile, as more foreclosures enter the market, prices will likely continue to edge toward greater affordability.  In addition, mortgage rates continue to remain historically low.  That, coupled with tax incentives for buyers, is likely to be a winning combination for Las Vegas real estate. 

Many experts are saying that it is possible that we won't be able to accurately judge where the market is going until late February 2010, when the home buying season heads back into full gear for the next year.  That's when we'll know whether extended tax credits, if they pass, are effective. 

The $8,000 tax credit could can give first time homebuyers a needed edge in the Las Vegas market.  Have questions?  Need help  planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.