180,000 Homebuyers Will Benefit The Tax Credit Extension

The National Association of Realtors spokesperson Lucien Salvant estimated that up to 180,000 will benefit from the three-month homebuyer limited tax-credit extension approve by the House and the Senate on Tuesday and Wednesday respectively.

The measure will benefit homebuyers who had loans and real estate transactions in the pipeline and couldn't close by the June 30th deadline. The extension gives them the opportunity to finish up their deals and close by September 30th.

The legislation gives buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the original terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

However, it's absolutely late to take advantage of this federal housing tax credit now if you don't currently have a loan application in.

But interested buyers shouldn't be discouraged because the market is ripe with other opportunity. "The good news for people who didn't take advantage of the tax credit is that the inventory is still plentiful, although it's reduced significantly from what it was a year ago, prices are affordable, and the interest rates are the lowest they've been since the 1950s." The low interest rates are definitely a magnet for attracting buyers.

The magnets are there to attract homebuyers: low interest rates, good inventory, and affordable prices. "We're hoping that free enterprise—private industry—and the government can work together to create incentives for a hiring to help the jobless situation in this country," says Salvant.