This is a government press release from the U.S. Treasury Department yesterday, announcing the Administration's support for an extension of the first time home buyer tax credit, as well as an expansion of the credit to include certain purchases of primary residences by "move up" buyers. This article outlines the specifics of the proposed extended and expanded home buyer tax credit.
Here's hoping Congress passes legislation that implements these proposed changes. We're getting ready to go into the traditionally slowest selling season for real estate - from Thanksgiving through early January. It's possible - probable? hopeful? - that the tax credit could keep the market moving during this slow down period.
If you look at the activity over the last several weeks, mortgage applications have dropped off and the phones have stopped ringing. I think that's because those first time buyers either decided NOT to buy, because they had missed the "window" to get closed by November 30, 2009. Or the first time home buyers decided to sit on the sidelines, play the odds, and bet that legislation like the proposal on the table would get passed and they would get at least the same credit ($8,000) and possibly even more.
Now interest rates are starting to creep up. I wonder if that fact will get people off the fence. Lock your rates now, buyers! October through February is a great time to be a buyer. Sellers recognize that the selling season slows down to a glacial pace, and people who have to sell can get a bit panicky at the prospect of their house sitting on the market until Spring. So those of you with good credit and money to put down can get some really good deals.


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