Here it is! The updated information we have all been waiting for on the home buyer tax credit extension. It not only extends the current tax credit, but also offers a credit for those of us who already own a home!
How much of an impact will this most recent version have on the current real estate market? Overall, I think it will continue to help improve the steady sales of homes we have experienced in our area. The earlier versions of the tax credit, 2008 and 2009, did not make available any credits for current homeowners. The one passed and signed last week does, which should really help get a few more folks off the fence and spur the market. I think the biggest reason for the expansion to include current homeowners is the relative weakness in that end of the market. The “move-up” market has been painfully slow over the past few years as many were waiting to see how the economy would affect their job and investments.
The tax credit should also help keep the momentum of the first time buyer market. Traditionally, the winter season is a slower time of year for real estate sales. The prevailing logic is the tax credit and historically low mortgage rates will help buoy the market until it can stand of on its two feet come springtime.
Remember, the credits are meant to impact the short term real estate market. We all must continue to understand that this is very real money and will have a longer term impact on the U.S. Budget. The importance of the real estate’s market ability to stand on its own cannot be underestimated.
Click on this link for an easy to understand chart with all the updated tax credit info!