The recent National Association of Realtors (NAR) report shows existing housing sales on the rise by about 6.8 percent. This can widely be attributed to the housing tax credit. But as addressed by the Wall Street Journal, don’t count on an extension anytime soon if at all.
Congress initially passed a $7,500 tax credit for first-time home buyers two years ago. That credit had to be repaid over 15 years, and last spring, Congress extended the credit, expanded it to $8,000 and waived the repayment provisions. The extended credit had been set to expire in December 2009, and Congress extended it once more last fall. Also, a separate $6,500 tax credit was created for home buyers who already own a home.
Sen. Johnny Isaska (R., Ga.) swore that to secure the last extension, no further tax credit extensions would be made. While some state governments like California are issuing their own tax credit, the likelihood of a national tax credit extension is not likely at all. The current tax credit will expire on April 30, 2010.
But industry groups now say that the tax credit has run its course. “It’s time for the housing market to stand on its own two feet,” says a spokesman for the National Association of Realtors. A spokesman for the National Association of Home Builders says the group isn’t “actively asking for an extension at this time.”
Housing officials are hoping that the following will help continue home sales for the rest of the year:
- Low mortgage rates
- Increased home afforadability
- FHA mortgage programs requiring low down payments
There are talks in Congress of raising the down payment requirements from 3.5% to 5% for the FHA mortgage program, but nothing has been decided as of yet.
Now is the time to buy and lock in those low mortgage rates. Any contracts signed by April 30, 2010 will have until June 30, 2010 to close on a house. It’s not too late to qualify for the housing tax credit.
Equal Housing Opportunity
{ 1 trackback }
{ 0 comments… add one now }