So I've been hearing rumblings and reading articles around about a possible extensioin of the tax credit that is currently in place until December 1st (technically November 30th if you want to be picky).
I have mixed feelings about this, if it is being uttered amongst the community. Right now, buyers are feeling a push to get into a new home by the deadline because the expectation was that the credit would expire. This is good.
If it gets extended there are some factors to consider:
1. What if its better than the current credit? Well, that would definitely be a point of contention for the buyers who have already closed on homes in order to receive the current credit. Thankfully, it sounds like this will not be the case, but its definitely something to prepare our clients for right?
2. Will the urgency disappear with current buyers? Okay, so if it's decided to extend it, and buyers are rushing to find a home now in order to meet the current deadline, will this delay their urgency to the point they will possibly slow down and back off from homes they are currently considering?
3. If it doesn't get extended, what happens to the increase in home sales? I have to admit, I think that the credit has definitely helped the economy. To see an increase this past year has been pretty astounding. I personally worry that if this doesn't get extended, there will be a drop because there is no motivating factor around purchasing a home (some buyers still don't realize the long term benefits of home ownership so if the government needs to use the credit like a carrot, so be it, at least it gets some movement.)
I'm sure there are other factors to consider with this and it may be an ongoing debate for our fearless leaders...I'm all for whatever will help us do our jobs and help buyers get into a home...as Tim Gunn would say... "MAKE IT WORK".