I’ve heard from way too many folks – inside and outside the real estate industry – that they think the first-time-home buyer tax credit will not go away as scheduled on December 1. If you’re financing a purchase, that means the deadline to get under contract is now – if it’s not already too late! I’ve heard it from potential buyers, from real estate agents, and even a stock broker. But the extension is not a sure thing.
Congressional hearings on whether or not to extend have just begun, and the White House has not yet taken a position. Housing and Urban Development Secretary Shaun Donovan said Tuesday that it will be a “few weeks” before the Department even has the data to discuss with Congress whether or not to extend the credit. Meanwhile, the Internal Revenue Service is investigating over 100,000 potentially fraudulent attempts to claim the popular tax credit, according to a report in today’s Wall Street Journal.
The credit has generated many more claims than Congress anticipated when it was enacted earlier this year as part of the stimulus package. While the Mortgage Brokers Association and the National Association of Realtors® are lobbying hard for an extension and even an expansion of the credit, low interest rates and low prices may be enough to spur a housing market that is beginning to show signs of a turn-around in some markets. There are plenty of other demands for Congressional appropriations – including rescuing nearly 20 state governments that are on the verge of collapse and answering the public clamor for health insurance reform, including a public option.
So, while there may be a tax credit available if you delay your home purchase now, don’t count on it.
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To buy or sell any Flagstaff home, contact me: Ann Heitland at RE/MAX Peak Properties.
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