Extending the $8,000 Tax Credit - Massachusetts Blog

By
Real Estate Agent with The Buyers' Counsel

watch on moneyAs first-time home buyers in Massachusetts race against the clock to take advantage of the current $8,000 tax incentive, some of our Senators are racing to get the bill renewed.  

Senate Majority Leader Harry Reid has been working on the bill and he says he expects Congress to extend it into the new year. 

The tax credit, which was approved as part of the federal stimulus package, is currently set to expire on December 1. 

So far, the program has encouraged around 2.5 million first-time home buyers to make their move toward the purchase a home.  And, according to the National Association of Realtors, existing home sales are likely to rise 7.0 percent to 5.51 million in 2009 from an expected total of 5.15 million this year. 

The National Association of Home Builders has estimated that the tax credit will stimulate 160,000 home sales throughout the rest of the year.  

Meanwhile, Realtors have been working hard to convince the government to keep the policy in place for as long as possible.  Jerry Giovaniello, a lobbyist for NAR, spoke at the Greater Las Vegas Association of Realtors last month and said that they were trying to garner support for an extension of the credit into 2010 and to increase the amount to $15,000.  They also want to make it available to all sectors of the public, not only first-time buyers.  

Senator Johnny Isakson, who successfully proposed the original $15,000 tax credit bill in February, has teamed up with Chris Dodd to try to breathe new life into the idea

Since there seems to be bi-partisan support for at least the extension of the current program, the chances are good that it will stay around until next year. 

Related Posts: 

Using the Tax Credit as a Down Payment on a Home

Taking Advantage of the $8000 First-time Home Buyer Tax Credit

Copyright 2009 - Claudette Millette, President,TheBuyersCounsel -  800-392-1446, E-mail    

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. 1~Judi Barrett 08/20/2009 12:12 AM
  2. Charles Stallions 08/28/2009 06:14 PM
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Location:
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Rainmaker
223,433
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Let's keep our fingers crossed that they extend it.  It would be great if they opened it up to more than just first time buyers as other sectors of the market are still losing ground. 

 

Aug 19, 2009 12:37 PM #1
Rainmaker
101,582
Matthew Naumann
Exit Realty Charleston Group - Goose Creek, SC
Goose Creek, SC Real Estate Agent

Claudette,

Thanks for sharing, I hope the extension allows other buyers to take advantage.

Thanks again,

Matt Naumann

Aug 19, 2009 01:44 PM #2
Ambassador
2,286,939
1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Claudette, I'm glad that you have posted this.  There are many potential home buyers that could benefit from this and you are keeping the news out there for them about what is going on with the tax credit. 

Aug 20, 2009 12:09 AM #3
Rainer
336,110
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I am of course all for extending the First time buyers credit. But by the same token isn't this just one more reason for FTBs to sit on the fence?

Aug 20, 2009 12:25 AM #4
Rainmaker
172,914
Cynthia Bartch
Home Stager/Property Stylist & more! Granville, Ohio - Granville, OH
Redesigned Spaces; All Round Nice Gal

Hi Claudette, I do hope this is passed so I can convince a family member now is the time to buy. I hadn't been aware of the proposed extension.

Aug 20, 2009 02:02 AM #5
Ambassador
3,673,422
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Claudette, the $15,000 for everyone would probably get even me to move! 

Aug 20, 2009 02:04 AM #6
Rainmaker
236,386
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Claudette - I think the industry as a whole is praying for an extension of the tax credit... The $15K for all would just be an added bonus!

Aug 20, 2009 02:18 AM #7
Rainmaker
403,509
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Thanks for your comments, all.

Laura:  That's a very good point, but this is still only a proposal that they are working on -- it's not a sure thing (Just like the $15,000 that was proposed last February and did not succeed.) So, let's hope that buyers keep that in mind and still try to make the December deadline.

 

Aug 20, 2009 03:07 AM #8
Anonymous
Kathy Vasel

Hi Claudette,

  I am finding that many buyers and citizens do not know the rules around the tax credit.  In addition, buyers are afraid they won't qualify for a loan from all the negative media.  Try this article in your marketing...It has done wonders for me to gain interested buyers and leads.  www.kathyvasel.com/top10.doc

Oct 02, 2009 06:06 PM #9
Rainmaker
403,509
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Kathy:

I guess we have to make sure that they know what the rules are. And, that time is running out.

 

 

Oct 09, 2009 03:14 AM #10
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Claudette Millette

Buyer, Broker - Metrowest Mass
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