The First Time Home Buyer Tax Credit of 2009 was given new life late last year. President Obama extended the original credit end date until April 30th for purchases and buyers under contract before then have until the end of June to close escrow and claim the credit. The credit has been a success to this point, helping to drive consumers back into the ailing real estate market.
There has been some talk in the media about 2010 being the rebound year for the economy. Home sales in several areas around the country are up and prices have stabilized or increased. However, foreclosures are still a problem in several states coupled with high unemployment. Considering the overall state of the union, I wonder if the government isn’t considering an extension of the credit into the fall.
Interest rates are still very low and there is plenty of surplus housing available. Consumers have been buying but new inventory coming on the market is still a factor.
What do you think?
All real estate is local. Locally I’ve got enough supply to last for two years and sellers will not be getting top dollar till the number of foreclosures and short sales are significantly reduced. How can you ask top dollar for a home in a neighborhood of 120 homes where 40 of them are for sale? Improvement will not happen till the unemployment rate goes down. I think this is a great time to get into the RENTAL business. Where are all the foreclosed with lousy credit going to live? They won’t be able to buy another home for a few years and in the meantime they will be looking to rent.
I have a feeling the tax credit will be extended again. It has def. helped get the market back on the turnaround but I still think there is lots of inventory out there. If all the foreclosures are released like they say are giong to be, that is just going to add even more to the inventory that we are trying to get rid of.
The tax credit needs to end immediately. Why should everyone who pays income taxes be subsidized down payments for first time home buyers. To extend the tax credit is completed redistribution of wealth. Call me an evil capitalist, I shouldn’t have to pay for someone’s down payment because they couldn’t manage their money properly.
There is certainly going to be a hangover after this tax credit ends in April/June. Expecting to see a VERY slow fall.