It happened before, and I'm keeping my fingers crossed that it will again.  Senate approves an extension to qualify for home-buyer tax credit

I just got an e-mail from a lender I work closely with, Seymoine Schmidt with FBC Mortgage, LLC that the proposal pushes the closing deadline back to Sept. 30, 2010, from the previous June 30 deadline.  Could this be the lifeline that is needed to spur summer home sales?

"By a 60-37 vote, the Senate on Wednesday approved a measure extending the closing deadline for qualifying for the home-buyer tax credit.   The proposal is expected to be added to a slimmed-down tax extenders bill that Senate Democratic leaders are expected to unveil Wednesday."

Great news to buyers and builders alike!  To qualify for the new credit, home-buyers have until June 30 to close on the purchase. The proposal pushes the closing deadline back to Sept. 30, 2010.  This could be the incentive for home buyers to move forward with a new home purchase.  We have many new home communities in St. Augustine that offer fabulous pricing and incentives to compete with the short sale and foreclosure homes.

Congress originally passed an $8,000 tax credit for first-time home-buyers as part of the stimulus bill President Barack Obama signed into law in February of 2009.  The credit was responsible for many sales of homes in St. Augustine, nudging buyers off the fence.

Lawmakers extended and expanded the measure last November to include a $6,500 tax credit for buyers who have already owned a home. Both of these measures expired at the end of April for buyers that enter into a contract to purchase a home. Wednesday's measure only extends the cutoff date for closing on the property. 

The buyer activity since the end of April has been sluggish.  An extension would again help the buyers waiting for "the bottom to hit" make a decision to buy now.  There are so many foreclosures and short sale opportunities on the market in St. Augustine now.   Great inventory paired with low interest and an extended tax credit, we will see a lot of happy homeowners in St Augustine, Fl.

The real estate market is a critical underpinning of our local economy.  An increase in sales from additional tax incentives could be the shot in the arm that Johns County and St. Augustine needs.