Don't Count on it. While it is clear that the first time home buyer tax credit in it's current form has proven to be a decent stimulus package for the housing industry, it is unlikley that it will be extended. Primarily as it is seen to have done it's job, to extend it longer would be to invite it's misuse on a large scale. It is time for the housing market to step out on it's own two feet again.
While that will likely result in a downturn for the immediate future, I believe strongly that by 2011 we will begin to return to some normalcy in our local market - perhaps even sooner.
Below I have attached a letter, from our National Association of Realtors President, Vicki Cox Golder regarding the issue of a Tax Credit Extension. It's a quick read, and she makes her point clear and early on - It's not going to happen. So if you are a First Time Home Buyer Looking for a house now...Get a move on!
From: Vicki Cox Golder, 2010 NAR President
Date: March 24, 2010
Re: NAR Update: Tax Credit
Dear fellow association leader:
As you know the deadline for the Homebuyer Tax Credit is fast approaching. Buyers must have a contract in place by April 30, 2010 with a closing date no later than June 30, 2010 to claim the credit.
We expect that REALTORS will be asking you what the NAR is doing to extend the tax credit. NAR has had extensive discussions with our congressional allies and concluded that an additional extension of the tax credit is unlikely. While lawmakers recognize that the tax credit helped stabilize the market, it appears that much of the benefit has been realized.
NAR is now focused on working with our REALTOR Party champions to improve the availability of financing, which continues to be an issue. Specifically, we are working with Congress to strengthen FHA and to help develop a new business model for the secondary mortgage market giants Fannie Mae and Freddie Mac. You can follow our efforts on both fronts at www.Realtor.org/GovernmentAffairs.
Vicki Cox Golder, CRB
2010 NAR President