The first time home buyer tax credit extension and expansion to $6500 for move-up buyers
is expected to greatly help the overall housing market. The plans are for this tax credit
to continue to help the stabilization of home prices and push prices higher in all of the
major United States markets. The Dallas/Fort Worth Real Estate market did not experience
the major run up in home prices in the last few years and the decline has not been anywhere
close to declines on the West Coast and East Coast.
We won’t know just how much the first time home buyer tax credit extension and expansion has
helped until several months from now. The previous deadline for the tax credit created a
sense of urgency in home buyers and it showed in an increase in home sales in October. In the
month of November home sales came in much lower than expected because the tax credit was
just recently extended and home owners knew they had until April to close on their home.
My guess is that will be a similar sense of urgency as we get closer to the new deadline of April 30th.
Buyers should not wait until the last minute, as it is taking Banks longer to close mortgage loans.
The extension to move-up buyers is expected to get a whole new set of “home buyers” in
the market. If you have been living in your current residence for more than five years
and you plan on moving up you could receive a tax credit of $6500. The first time home buyer
will receive a tax credit of $8000 if they close on or before April 30th. With these tax
credits and low mortgage rates, NOW is the time to buy a new home!
Author: Bill Nicholson