With the deadline looming for the current home buyer credit that expires in April 2010 (with closing by June 30th 2010), many are wondering if there is any update on a further extension of this popular tax credit.
Recent housing data suggests the housing market is still struggling. Various data and statistics points to evidence the housing market, at the center of the worst recession since the 1930s, is still struggling to rebound. So the question a number of realtors and the general public are asking is ... will the home buyer credit be extended again?
There has been positive and negative sentiment for the home buyer credit, however, in addition to allaying the weakness in the housing market, extending the home buyer credit again could be a smart political move in an election year.
Lawmakers, now more than ever, are looking for any successful mortgage and/or housing-related program that they can stand behind. Deficit issues and the concept of whether we're rewarding those who might have bought anyway will take a back seat. Keeping home sales going promotes home price stability, and that makes for less-grumpy voters as election time rolls around.
As of yet, there are few official rumblings about further extending the home buyer credit for new and existing home buyers. However, if the housing market and political climate continues to deteriorate I would not be surprised to see the credit extended again (albeit with slightly different conditions) to at least the end of the year.
I'll keep monitoring the status of this credit to see if an extension is proposed in any new bills and continue to post any new updates.
What are your thoughts on the following:
•· Has the homebuyer credit helped increase activity in your market?
•· Has it motivated sellers that were on the fence to purchase?
•· Should it be extended through the end of the year?
•· Does it lose its motivating impact each time it is extended ... as in yes ... this time we "really mean it will end" so buy now?