Home Buying in Richmond>Question Details

Melissa Loug…, Real Estate Pro in Richmond, VA

Do you think the first time buyer and replacement home buyer tax credits will be extended beyond April 30, 2010?

Asked by Melissa Loughridge Savenko, Richmond, VA Mon Mar 1, 2010

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The budget deficit argues against it. And I'm guessing Congress figures, correctly, that the tax credits have been in place long enough to give potential buyers an opportunity to buy. Besides, it appears that the recession actually ended a few months ago, and Congress knows it. If it's looking for ways to stimulate the economy, it'll find other, new ways to do so.

That's just a guess on my part. But I don't see the necessary pressure to continue them.
2 votes Thank Flag Link Mon Mar 1, 2010
Don Tepper, Real Estate Pro in Burke, VA
I agree with Don. There has been more than ample time for homebuyers to take advantage of the tax credit. Although a shorter timeframe for move-up buyers, those that feel comfortable about making the move will have done so,
1 vote Thank Flag Link Mon Mar 1, 2010
No, at some point it has to end , our government with need to show confidence that the economy is getting better, if they extend that will show weekness in the economy and they won't do that this time.They need to act like things are better wether they are or not.
0 votes Thank Flag Link Fri Mar 5, 2010
Pure speculation - no. At some point we need to see if our economy can stand on it's own two feet.

0 votes Thank Flag Link Tue Mar 2, 2010
I think not. I hope not.

The country can't afford to. Besides, I refuse to buy until those credits go away. I want an open and fair market.
0 votes Thank Flag Link Tue Mar 2, 2010
Well, the response from the real estate agent community so far is unanimous, and I have to say I totally agree. I don't think the credits will be extended either. I agree that we can't really AFFORD to extend the tax credits. It also seems to me that while the first time buyer tax credit has been effective in getting the first time buyers into the market, the replacement home tax credit has been a complete failure. I haven't worked with or heard of any seller deciding to sell in large part because of that $6,500. Now, for the folks who meet the criteria and were going to sell anyway, it's a nice bonus. But it doesn't seem to me it is broad enough or rich enough to induce move-up selling.

Unfortunately, I am starting to be very concerned about what will happen in the market after April 30, 2010. Unless lending requirements loosen and the unemployment picture gets much rosier, I'm afraid it may get worse before it gets better. That is something I'd be HAPPY to be wrong on.
0 votes Thank Flag Link Tue Mar 2, 2010
Although the National Association of Realtors is lobbying for an extension, I, too, would be surprised if these tax credits are extended. It certainly has been a boon to the market here in Northern Virginia, though.
Web Reference: http://www.mmgates.com
0 votes Thank Flag Link Tue Mar 2, 2010
Highly unlikely-the government can only do so much to keep this going. I would not count on it.
0 votes Thank Flag Link Mon Mar 1, 2010
Hi Melissa!
Tell your clients that they want to get into escrow now.
It looks very unlikely that it will be extended again & the closer we get to the deadline, the heavier the competition will be.
Anther thing is certain: a lot of buyers are going to be very sad when they miss out on their 'wealthy uncle's' gift.
0 votes Thank Flag Link Mon Mar 1, 2010
I will be very surprised if they do--the deficit is so huge--it's probably a good time to just let the market be...
0 votes Thank Flag Link Mon Mar 1, 2010
Hi Melissa,
When the First Time Homeowner's tax credit was extended back in October of last year there were several questions that congress did a good job of closing this time.
1. A contract must be ratified by April 30, but does not have to close until June.
2. Included a Current Homeowner Tax Credit to try and boost the "trickle up" effect of home buying.
As the economic recovery signs are being seen in several sectors I agree with Don and Pam. We will not be seeing an additional extension on the current Tax credits.
But that doesn't mean they can't introduce something new!
0 votes Thank Flag Link Mon Mar 1, 2010
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