Supoort to Extend the Homebuyer's Tax Credit gains Momentum
It's interesting that while I meet many buyers interested in taking advantage of the tax credit, I've only had 2 that closed and met the guidelines.
I find the biggest difficulty is buyer mindset-many are still in the "bargain-hunting" mode and overlook a home that may be the best fit for them as they chase after the absolute lowest-priced home.
The incentive program has definitely encouraged more buyers to actively participate in the market. The only problem with extending it again is it engenders the same behavior by buyers - "well, I'll just wait..."
Pressure on lawmakers to extend and increase the federal tax credit for home buyers has intensified in recent weeks. Congressional committees are now weighing no fewer than seven housing tax credit-related bills. Prominent business groups have lent their support for such measures. And governors of several states have authorized their own tax credits or advances on the federal credit. So far, though, only lawmakers in California have indicated they'd like to see their state's largesse extend beyond this year.
In Washington D.C., bills under consideration by House Ways and Means Committee and Senate Finance Committee are, in many respects, variations on the same theme. They would extend the federal tax credit to all buyers, not just-first-time buyers to whom the current tax credit is confined. All want the tax credit to be available to buyers into 2010. Most would eliminate income restrictions on who's eligible for the credit, and reduce the time buyers must live in the house purchased as a primary residence to two years, from three under the current bill.
As of yet, there are only a few official rumblings about further extending the home buyer credit for new and existing home buyers. However, if the housing market and political climate continues to deteriorate I would not be surprised to see the credit extended again (albeit with slightly different conditions) to at least the end of the year.
~John Caulfield is senior editor at BUILDER magazine. Some of the information in this post is courtesy of his column.
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