here is my 2 cents worth for free ! As a real estate broker for over 23 years I have noticed certain trends. For example, you hear interest rates are going to go up to 10% in the next 60 days. What do you do? Most people that are on the fence looking will react quickly and jump into the market. Well, within about 90 to 120 days after rates shoot up like that the home prices fall because people back off from buying because they don't like the home prices. So if you would have waited, you would have gotten a higher interest rate but most likely paid much less for your home. At the end of the day, your payments are about the same.
Point being, entry level homes are mostly what sells the $8,000 tax credit program. Take that away and the entry level home sales will drastically fall. That will more than likely force sellers to once again lower their home prices to attract entry level buyers back into the market.
I for one hope that they extend the program. It goes far beyond giving new home buyers a chance to improve their new nest egg with needed updating. I have seen buyers for the most part buying new lighting, flooring, cabinets, counter tops, paint , furniture and maybe a new vehicle for the garage all of which helps out our local and national economy.

I think you have some good answers here, but I would like to throw some 'food for thought' in here. How much are you saving in the next year? If it is less than $8,000 then you need to consider moving now. How long will it take you to save the $8,000 you would get from the government? Sometimes you need to sit down and do some simple math. Good luck!

Right now there's no way of telling if the current direction is the one that will make the difference we nee to get through this.

It would be fair to assume there will be some type of government involvement but it's too soon to tell what shape it will take but something needs to be done to keep people in their homes and to stop the much anticipated, next wave of foreclosures.

I strongly agree with Trisha Lee. We have no idea if the federal government will have a tax credit in 2010. It's not too soon to begin working with a lender & Realtor even if you decide not to buy until 2010. As a first time buyer, make your lender & Realtor a team to assist you with questions, concerns, etc.

Dear Linz -
There has, to date, been no discussion of extending the $8,000 tax credit beyond the end of November cut off date but they may be reassessing the impact it has had on the economy and change their minds. I would meet with a lender, if you have not already done so, to see where you are on qualifying for a home. I would also talk to a REALTOR to see what's happening in the market.

It's difficult to make any kind of decisions in a vacumn and knowledge is power. Having said that, I agree with Cameon Piper that you should make a plan and stick to it, not just to try and get the $8,000. You might have already done these steps but neither talking to a lender nor a REALTOR commits you to moving forward TODAY...just gathering information for moving forward when it is appropriate for you.

I've had clients that I've worked with for extened periods of time for a variety of reasons (they need to sell their home to buy, they're working to build more $ for downpayment, to work out of debt, and so on). A good REALTOR wants to hear from you now and will keep in touch until you're ready.

If you're not already working with someone, I can recommend several good people that you can call in the Lees Summit area. Please contact me from the information listed below if you'd like help.

Trisha Lee REMAX Boone Realty, Columbia, MO
573-999-1000 TrishaLee@Remax.net

Linz,

You are catching house fever. My advice is to stick to your plan. A home purchase should be a rational, thought out, balanced decision. Things like tax breaks and credits shouldn't play into the decision because it creates emotion, emotion leads to fear (in this case fear of losing the credit), and fear leads to hasty and often ill advised decisions.

Cameron Piper