If you were hoping that the recent bill extending the filing for the $8,000 tax credit would be extended, it didn't make it off the Senate floor. Unfortunately, the senate killed the $100Billion dollar stimulus bill which included business tax breaks, renewing the flood insurance program and for the "99ers" another extension for the terminally unemployed in our country. Why the tax credit was tied to this mish-mash of legislation is beyond many, but it unfortunately died as a result of $35Bil of the bill not being paid for by added taxes or cuts in the budget. The current end date for the tax credit is set for June 30, 2010, which meant that your contract had to be written by April 30, 2010 and must close by June 30. The extension would have given buyers an additional 90 days to close their purchases and therefore, qualify for the tax credit.
Although I'm grateful that those in DC are finally beginning to watch their spending, this was the wrong time to shut so many people out of a housing market. With May's sales numbers down by more than 30% in the new home market, I was hoping this bill would at least allow those transactions caught in a distressed market more time. As we all know the recovery of our economy is directly tied to the strength of our housing market and so I can only hope that the bill will come back to life as a stand alone offering, or with stronger tie-in legislation.
With as much as 70% of the current market being classified as distressed properties, and a majority of those being short sales, it simply was not enough time for the hundreds of thousands of homeowners caught in the lengthy negotiating process. For those buyers who were counting on the credit to offset their closing costs or down payment this is costly news. The fact that it failed literally within days of the initial expiration of the tax credit is even more disappointing. We are in a market and time that calls for "Outside of the Box Thinking" and that includes seller contributions, and even reduction in the purchase price of the home if need be to offset this news.
If you are a buyer looking for a good buy on a home in the Phoenix, Arizona market I would be honored if you'd allow me to help you find the home of your dreams. There are still a great number of phenomenal buys in the market that will more than offset the end to this program, and with interest rates at all time lows there couldn't be a better time to buy. Not to mention... its not that the bill isn't completely dead, since there are those in high positions still fighting for its passage. I'll keep you informedSenate Majority Harry Reid did say he would try and revive it in either a smaller or stand-alone bill. I look forward to speaking with
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