Woo hoo! According to CNN and other sources, the Senate has reached a deal to extend the current first time home buyer tax credit until April 2010, and even to expand the tax credit to certain other buyers of primary residences. A $6,500 tax credit would be available to purchasers of a "new" primary residence, so long as they have lived in their existing primary residence for at least five (5) continuous years.
As always, the devil is in the details. However, Speaker Nancy Pelosi indicated earlier this week that the House would take it's lead from the Senate and pass whatever legislation the Senate sent over. Here's hoping that's true, and it happens FAST. Based on my own experience and anecdotal evidence from other agents in my office, the sales market, which was being primarily driven by first time buyers, has come to a dead halt in the last 10 days to two weeks. Our theory on why that is the case: Buyers are waiting on the sidelines to see if the credit might get even richer.
Let's get some certainty, and move forward, especially while the interest rate environment is so favorable. Here's hoping this credit extension and expansion happens, and leads to more home buying and selling.
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