Well, it looks like we are going to see a $7,290 version of the tax credit through April 30th of next year (contract date; can close by the end of June 2010). This new plan would be for move up buyers’ too, not just first time homebuyers. The new agreement - which is still being negotiated and may change - would grant the credit to borrowers who have lived in their current home for at least five years.

Details: http://signswemustobserve.blogspot.com/2009/10/7290-by-april…

Are you looking to take advantage of this credit in the next 6 months? Or do you know someone who may need help in finding the right home at the right price?

Kevin Pellatiro
Hoping to help you take advantage of the market – when you are ready.
(615)714-7918 | kpellatiro@realtracs.com | http://signswemustobserve.blogspot.com/

If the credit is extended and/or expanded we probably wouldn't hear anything until around February. I believe February is when they made the announcement about the $8,000 after the $7500 credit expired.

A lot of things point to a credit in 2010, however, many analysts have said a higher credit could lead to higher interest rates and home prices. $15,000 could actually be worse than the current $8,000.

If you are sure you want to purchase a home, try to do it by Nov. 30 - but that really means contracting on a property this week and crossing your fingers you don't have any delays to your closing date - or that the inspection or appraisals don't kill the deal. If you're just trying to cash in on the tax credit, that's probably not the best reason to buy a home. Think about if right now is the time for you to buy (generally and historically it is an amazing time to buy, but we're all at different places in our lives) and make your decisions based on that.

On ray of light if you're not quite ready. Many analysts have also said the tax credit didn't really add that many buyers to the pool, it just accelerated the buyers that would have purchased in the next 3 to 6 months anyhow. If that's the case, there will probably be a slowdown for 90-180 days where the people who would have been buying during that time have already bought - and those people are currently making up around half all the home sales. That could lead to some price reductions in December and January before an announcement (if there will be one) of what will happen with the tax credit.

As Julia stated, there is no extension as of today and there might not be an extension. For those buyers who do not close by Nov 30, 2009, there is no guarantee the tax credit deadline will be extended.

Check here for an AP article on the matter http://www.google.com/hostednews/ap/article/ALeqM5i2DO5e0FCB…

There are some bills starting to move through Congress but there is no guarantee that any will be passed. Your guess is as good as any at this point.

If you are holding off on buying, waiting for a new (read: better) credit to be passed you might miss out all together.