The First Time Home Buyer Tax Credit was set to expire at the end of November but the Senate announced today that it will be extended out to at least April of 2010. This credit gives a buyer and $8,000 tax credit if they are buying their first home.
We have been in a rush to get several deals closed before the end of November to meet this deadline. Now we can breathe.
In addition, the senate is expending the tax credit to give a $6,500 credit to repeat buyers who have owned their previous homes for at least 5 years. Not sure how the details of that works yet, but we will see.
So, the Feds are continuing to prop up the housing industry with more subsidies. I don’t think this is a good idea on the macro-economic level, but on the micro-level…if I were looking for a home, I certainly would take advantage of it.