First Time Buyers Want Extension of the Tax Credit. Will It Happen?

On October 20, 2009 National Association of Realtors® First Vice President Ron Phipps spoke to the Senate Banking, Housing and Urban Affairs Committee during a hearing on “The State of the Nation’s Housing Market.” Phipps cited data that shows how providing the tax credit has helped strengthen homes sales. Such homes sales also in turn provide an economic boost to the national economy.

The present credit is due to expire on November 30, 2009 and could gravely impact the gains made by the current tax credit for the housing market and overall economy. 

Some of the naysayers against extending the credit state concerns regarding the ability of the IRS  to effectively administer the credits that have been claimed. They have expressed concerns over fraudulent claims.  Many of the claimants, nearly 74,000, appeared to have already owned a home.  According to congressional estimates, an extension would cost roughly $1 billion per month. The question is whether the expense would outweigh the boost in the housing market.

As the debate continues, it is undeniable that this tax credit has helped many first time buyers become homeowners. Hopefully, we can see this continue.

Keisha Hosea is a local Market Expert and Realtor in Chino Hills, California with Keller Williams Realty, She is the Team Director and CEO of KASI Homes. She has been a local resident for over 22 years and enjoys volunteering with the City of Chino Hills in her spare time. You may call her direct at (909) 261-6377 for further questions on this information or any other real estate advice.