The first-time home buyer credit for $8,000 is set to expire on November 30th this year, leaving a very short window for those who still hope to take advantage of it, considering the length of time required to find a home and close a sale. The purpose of the tax credit was to incentivize first-time home buyers to buy real estate in order to help stimulate the housing market.
The National Association of Realtors (NAR) is calling for an extension to the credit. NAR president Charles McMillan expressed feelings that Congress should not allow the credit to expire if they are serious about consistently supporting this recovery. He worries that canceling out the credit will undermine sustained progress in the future.
According to the NAR, the first-time buyer credit is responsible for about 1.2 million new buyers in the housing market. Of this amount, it is estimated that 350,000 of them would not have bought a home without the credit.
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