Homebuyers tax credit may be extended
Three of the biggest housing lobby groups around want the $8,000 tax credit for first-time homebuyers to not end, as scheduled, on Nov. 30.
“Although we are seeing some improvement in the housing market, it is essential that the favorable impact of the first-time homebuyer credit be sustained beyond the upcoming expiration date,” the trio of trade groups wrote Monday to Treasury Secretary Tim Geithner, HUD secretary Shaun Donovan and National Economic Council Chair Lawrence Summers.
The powerful coalition of the National Association of Home Builders, National Association of Realtors and Mortgage Bankers Association want another year of the tax break “to ensure we do not jolt today’s very fragile housing market.”
Sounds to me with backing like that, this one will steamroll right through Congress.
A few months ago, the Realtors weren’t too crazy about this possibility getting widespread attention. Because they want to sell homes now, not next year.
But extending it makes sense. The question is, will Congress leave it at that? Or will it apply to a broader group, like maybe all homebuyers?
Once Congress starts tinkering with tax law, anything can happen.
Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
They should make up their mind already! Everyone is waiting to buy because its to late to get the tax break, even if they run out to by a house today.
Posted by: dave | October 20, 2009 11:12 AM
They should consider extending it. Most of the homes on the market are short sales that take months and months to go through. I put an offer on a short sale, and waited 7 months to be told the bank would not take the offer. We only had a couple of months left to look before the tax credit deadline so we have stopped looking just recently. I'm sure there are others in the same situation. We are going to hold off for a while whether they extend it or not. What we saw was an increase in price because homeowners know that people want to meet the deadline...hence they could get away with jacking the prices up. I would rather sit back and wait until the pissing contest is over (pardon my french) and prices level out. Just my opinion.
Posted by: Rsamorose | October 20, 2009 12:23 PM
They definitly need to extend it. That tax credit is for people who normally can't afford a house have the chance to actually get one. People like myself cant find a house because investors keep outbidding me. If they extend I still may have a chance to get a house.
Posted by: PENNI | October 20, 2009 1:22 PM
this is the same theory as cash for clunkers another way to spread the wealth and kill the housing market for the next year after the program ends
Posted by: lou | October 20, 2009 3:24 PM
In response to Rsamorose, the tax credit and your experience with investors outbidding you are two different issues. In most situations typical investors would be disqualified from receiving the $8K tax credit because they probably already own a home and have an income level higher than $75,000. Bidding wars most often occur in situations dealing w/ bank owned property.
Posted by: Frederick Cheeseborough | October 20, 2009 6:28 PM
Just another boondoggle by the socialist Dem. congress.
Posted by: gevagj | October 23, 2009 12:57 PM
Just another boondoggle by the socialist Dem. congress.
Posted by: gevagj | October 23, 2009 12:57 PM
Just another boondoggle by the socialist Dem. congress.
Posted by: gevagj | October 23, 2009 12:58 PM
Another way for the thiefs to get tax payers money that the socialist government likes to hand out. Fraud already reported on NBC News 10/22/09. Probably more of those ACORN people
Posted by: gevagj | October 23, 2009 1:03 PM