Nobody really knows right now. So far the tax credit has played a significant role in stabilizing prices and revitalizing the housing market across the nation. It’s now up to Congress and the President whether or not this shot in the arm for real estate will continue.
Many experts who watch the legislative process closely say there is about a 60 percent chance that some sort of tax credit extension will be passed. Most believe that if it does pass, it will most likely be a six-month extension of the current version. However, there are significant numbers of economists and real estate industry advocates pushing for a full year extension as well as a larger credit (some are arguing it should be as much as $15,000) that goes to anyone who buys a home – not just first-time homebuyers.
There are no guarantees for the future – just look how quickly the Cash for Clunkers funds ran out! Those who haven’t owned a home in the past three years are eligible for the tax credit right now in its current format. If you fall into that group and you’ve been thinking of buying a home, I urge you to get with a Realtor and start looking for a house right away. In order to qualify for the tax credit, your purchase must close before December 1, 2009. The national average for time between acceptance of contract and closing date is currently 45-60 days. And we expect that timeframe to get longer as more people scramble to get their purchases closed before the deadline.