Further Extension of Tax Credit Unlikely, Says NAR

posted on April 7th, 2010 filed under: Real Estate News

Looks like the $8,000 homebuyer tax credit will not be extended beyond its currently scheduled expiration (contracts by April 30, closings by June 30).  Originally, the credit was to expire on November 30 (closings).  The National Association of Realtors, which lobbied hard for the extension, is telling members that its efforts to get another extension are not likely to succeed.

Whether the credit was a good or bad idea — whether it truly generated demand or merely pulled demand forward — is debatable.  And whether you ought to buy now because the credit will soon expire is likewise debatable; an asset that draws more interest because of a government handout may be worth a little more while the handout is available — and a little less when the handout disappears.  Despite the risk, buyers in Miami and Coral Gables seemed to like the handout, as low-end real estate activity surged.

One thing appears certain:  It’s almost over.

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posted by // This entry was posted on Wednesday, April 7th, 2010 at 9:30 am and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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