As you all may know, Congress passed the American Recovery and Reinvestment Act of 2009 that authorizes qualified first-time home buyers a tax credit of up to $8,000 provided they purchase their residence between January 1, 2009 and November 30, 2009.
This was a move that was welcomed by would-be homeowners as well as members of the housing industry. Would-be homeowners are now more inclined to purchase their homes because they know that they’ll be getting a savings of $8,000 in the short term. And what’s great about this tax credit is that, unlike the 2008 tax credit, this doesn’t need to be repaid. So, it’s really like getting $8,000 in windfall money. You also have plenty of choices as to which type of home you would like to purchase – whether you want a bungalow, a condominium, a mobile home or even a houseboat. All of these are eligible for purchase.
Now, this 2009 tax credit offer will expire November 30, 2009. Speculations are soaring whether Congress will extend this offer or not. Some expert’s say that it shouldn’t be extended considering that the State’s debts are really piling up and they need all the revenue that they can get. On the other hand, some economists are saying that extending this $8,000 tax credit is a boom to the real estate industry because it will keep the cycle moving as more and more people are taking advantage of being able to buy their homes despite the crisis.
Being able to buy a home during this down cycle in the real estate market can really help the economy. It helps move inventory that is not moving and gets people in to owning a home instead of paying rent. In the San Diego Real Estate market, it has allowed many buyers to purchase homes they could not afford to buy 3-4 years ago. If you think that this should be extended please continue to talk about it. Leave a comment and let us know why it should be extended. If you think that the first-time home buyer’s tax credit has gone on long enough and you want to put it on the shelf, please leave a comment with your reason.