I may have to “eat my hat” on this issue. I’ve said for a couple of months now that the First-Time Homebuyer Tax Credit, which has allowed buyers $8000 on home purchases in Flagstaff, is unlikely to be extended beyond its scheduled expiration on November 30. But Senate Majority Leader Harry Reid said today that Democrats had reached agreement to extend the credit through next April and expand it to repeat buyers.

Details are unclear at this point, but Reid wants to attach this bill as an amendment to the pending bill to extend unemployment benefits, which has broad support in Congress. Differing news reports today indicate that a compromise on the tax credit would involve reducing the credit to first-time home buyers by about 10% and extending a credit to repeat buyers of up to $6500. First-time buyers should still make it their goal to close a purchase by November 30 to get the maximum tax credit.

As more details become available, you’ll be able to read them here. If the tax credit is extended, it’ll just prove what my friends already know: I’m not a political expert. But home sales are my business. Call me if you want to buy or sell a Flagstaff home -- and don’t ask my political advice!