It's Here to Stay…Maybe?

There has been a lot of waiting and talking about whether or not the first-time home buyer tax credit would be extended, and it seems as though the wait is over.  A tentative deal was reached among the Senate negotiators agreeing to extend the it!  Although this time around, first-time home buyers may not be the only ones with the ability to cash in.  They are looking to add an additional new credit for those who have been in their current home for a consecutive 5 year period (within the past 8 years).  Although this tax credit is not quite the $8,000 many first timers are receiving, $6,500 sure looks better than $0!  This is a positive note, especially considering what we wrote about last week, people who tried to take advantage of the tax credit by less by less than honest measures.  We have been seeing signs of recovery in the housing market, could it be because of this tax credit?  If they extend the offer to current home owners, might we see an even bigger boost in the market?  If so, we can’t rely on tax credits forever, and this could all turn into one huge band-aid fix, and come time to pull it off, we might not be feeling so hot.  Nonetheless, it is nice to see some life being brought into the mainstream of this market.  Senate lawmakers are still arguing over how this new program will be brought to the senate floor.  And with the IRS currently examining the program for fraud, we will just have to wait for finalization.  But it’s looking really good for those of you hoping to take advantage of the first time, or what would be, current home buyer credit.  Don’t forget, those of you who are first-time home buyers still have until the end of this month to utilize the program, no matter what, so don’t wait!