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April 26th, 2010 (Modified on June 17th, 2010)

Update13: Poll Results: Extend the Homebuyer Tax Credit Again!

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-Be sure to read about our mention in MarketWatch.com-

Update13: The votes keep coming — we’re up to 4,674 votes! Here are our current results:

Should the homebuyer tax credit be extended again?

View Results

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**Should the homebuyer tax credit’s closing deadline be extended?**
**Vote Now**

Original Post (published 04/09/10): We started a poll back on March 30 asking readers if they were depending on the homebuyer tax credit to be extended for a second time. The results are in: (as of 1:30 p.m. 04/09/10) 93% of you said you’re depending on the homebuyer tax credit to be extended again!

While there’s still no official word from lawmakers over whether or not the tax credit will receive its second extension, the results of our poll speak for themselves. Our poll indicated that only 6% of you thought it was time for the homebuyer tax credit to end, and only 1% expressed that you “couldn’t care less.”

With the credit slated for expiry at the end of April (contracts must be signed by April 30, and borrowers must close their deals by June 30), the approaching deadline seems to be increasing homebuyer activity.

Pending home sales rose 8.2% in February, according to the National Association of Realtors (NAR), “potentially signaling a second surge of home sales in response to the home buyer tax credit.”

February’s existing home sales, while “higher than year-ago levels for eight straight months,” declined slightly from January, proof that housing recovery remains fragile, says the NAR.

“The key test for a durable recovery comes in the next few months as the tax credit deadline approaches,” said Lawrence Yun, NAR chief economist. “If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization.”

With mechanisms in place to keep mortgage rates low for the time being, our poll makes it clear that potential homebuyers are still counting on the tax credit to incentivize their decision to purchase.

As the economy and credit conditions continue to improve and as private investors return to the mortgage market, mortgage rates will probably begin to firm. If industry leaders like the NAR are still classifying the housing market’s recovery as “fragile,” and if 93% of you are depending on the tax credit to continue, lawmakers should listen.

We want to extend a huge thanks to all those who voted on the tax credit poll. This poll received more than double the votes than all the other blog.HSH.com polls combined!

We’ll keep the poll open until the deadline or until we get an extension.

Should the homebuyer tax credit be extended again?

View Results

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45 Responses to “Update13: Poll Results: Extend the Homebuyer Tax Credit Again!”

  1. Derrek Michaign Says: April 9th, 2010 at 1:43 pm

    Thanks for the post

    The NAR is saying it wont be, but it is just a sales pitch from the NAR. They are just trying to push people as hard as they can to sign on the dotted line before the end of the month.

    We all know that with out the Tax credit house sales are going to fall fast. The Dems are already hurting from the healthcare bill, so they will have to extend the credit to keep the economic numbers on an upswing befor election day.

    I say that congress is going along with the sales pitch to help boost Aprils numbers. At the end of the day washington will have no choice but to extend the credit.

  2. Tim Manni Says: April 9th, 2010 at 1:54 pm

    Hey Derrek,

    Thanks for staying on top of our blog and this tax credit story. I agree that an extension could be an “easy victory” for lawmakers. Of course some who either don’t qualify or aren’t in the market for homes will be upset that some are getting incentives while others aren’t, but at least the tax credit isn’t a “reward for failing” (how many opponents criticize many of the other housing preservation efforts that are in place).

    Thanks again,
    Tim

  3. The Tim Says: April 9th, 2010 at 3:24 pm

    Interesting how different your results are from the similar poll I posted on my consumer-oriented site a few weeks ago.

    My poll only ran for a week, but 62% of our 174 voters said that they were “anxiously awaiting the death of this counter-productive incentive.” 24% were “more or less ambivalent.” Leaving only 14% in favor of the credit.

  4. Tim Manni Says: April 9th, 2010 at 5:28 pm

    The Tim,

    Interesting indeed.

    That’s fascinating stuff, especially since most of our content tends to be consumer-related as well.
    Perhaps the reason we got such differing results is because you guys are a Seattle-centric blog…I’m not a expert on Seattle’s housing market in particular, but they’re surely not making daily headlines
    with their dismal housing conditions. I’m hoping our results are spread throughout the country.

    I’d love to hear some more about the current state of Seattle’s housing market. What are your
    thoughts on the differing results?

    Thanks for commenting,
    Tim

  5. Stephanie Johnson Says: April 12th, 2010 at 10:53 pm

    I absolutely hope that lawmakers extend the tax credit–it’s the only way I can afford to get into a house: let me explain, briefly.

    I am forty years old, single, a college instructor with a modest salary and $ 400 a month in student loans, a car payment, child support, and b/c I’m single I get killed on taxes every month.

    SO, I have good credit, but b/c of my financial obligations every month, I’m going to have to buy a foreclosure in order to keep the monthly payment down. I can’t afford anything more than $500-550 per month; therefore, I am ABSOLUTELY counting on that tax credit to help offset the cost of repairs to the house.

    I know I’m not the only post-graduate that is saddled with student loan debt and would like to finally be able to enjoy owning a home…after all, I went to school for years in order to have some security and quality of life.

    LAWMAKERS: PLEASE EXTEND THE TAX CREDIT!!!

  6. Home buyer tax credit deadline approaches :: Make Money Online Says: April 13th, 2010 at 10:52 pm

    [...] But mortgage publisher HSH Associates notes that most of the people taking a poll on its blog “overwhelmingly support” more time. As of 10 p.m. Monday, 84 percent said they were “depending on” an extension. [...]

  7. Tim Manni Says: April 14th, 2010 at 11:33 am

    Stephanie and Roberta,

    Thanks for commenting!

    -Tim

  8. scott dumler Says: April 15th, 2010 at 1:54 pm

    Switching horses in mid stream can lead to drowning. Keep riding and see what happens.
    (at least through the Summer/Fall.)

  9. Lucia Says: April 16th, 2010 at 8:43 pm

    Tim, the results of your poll could also mean that a whole lot of people are addicted to govt handouts. This is not a good sign.

  10. Giovana Louisa Says: April 17th, 2010 at 11:32 am

    Anyone needing to sell for whatever reason, would be stupid to be against the tax extension since it’s their only hope for a sale in most markets. I say Congress should pass an extension since it’s the only boat left floating these days. The markets may crumble again as the SEC finds more fraudulent bankers, financial institutions! Pass extension!

  11. sean Says: April 18th, 2010 at 11:09 am

    These credits are ridiculously formed. I owned a home a little over a year ago, but due to several moves did not purchase again yet. Now I am in this gap between a new homebuyer and credit for selling your old home and buying a new one. If they are going to make a credit for people who don’t buy a home to buy a new one it should be across the board. I am not looking for the government to hand me money, but because of these credits sellers are not working at fair market conditions (i.e. this credit is making it more expensive to buy a house) and it is making me not want to buy. The same thing happened when I wanted to buy a car during cash for clunkers, but did not have a trade in. Everywhere I looked said we are not negotiating because there is this program that is subsidizing everyone.

  12. Doriann Says: April 18th, 2010 at 8:22 pm

    I am praying the tax credit gets extended again. We are second time homebuyers, but our home is definately perfect for the first time home buyer. Sure, it would be nice for us to be able to get the second homebuyer credit, but I’m more in favor of the first time homebuyer credit to be extended to make the sale of our home. An extension on both would be great though! :)

  13. Dwight Says: April 19th, 2010 at 9:28 am

    I’m with Sean. I too fall into the “doughnut hole” between the first time buyer ($8000) and the existing homeowner ($6500) tax credit. So basically the government is making it HARDER for me to buy a house.

    If they are going to extend this credit it needs to be across the board and not discriminatory like it is now.

  14. Why the Home Buyer Tax Credit Won't Be Extended Says: April 19th, 2010 at 1:57 pm

    [...] [...]

  15. Boot Says: April 19th, 2010 at 4:11 pm

    Extend it to anyone that has a contract before April 30. Let them close whenever and then let them file. This 2 month turnaround is impossible if you are building and not buying.

  16. Tim Manni Says: April 19th, 2010 at 5:17 pm

    Boot,

    Hmmm, we’ve been hearing a lot of support for another extension from those who are building homes for the very reasons you mentioned. Good suggestion and thanks for commenting,
    Tim

  17. Tim Manni Says: April 19th, 2010 at 5:18 pm

    Dwight,

    Like I’ve said before, this tax credit shouldn’t be your driving force behind whether or not to buy. Rates are low, prices are cheap, focus on that, the tax credit is just a bonus.

    -Tim

  18. Tim Manni Says: April 19th, 2010 at 5:21 pm

    Lucia,

    I think you’re right to a degree. I’m hearing from some potential borrowers who are letting the tax credit control their option of whether or not to buy — not a good thing. Thanks for commenting, great hearing from you again.
    -Tim

  19. Tim Manni Says: April 19th, 2010 at 5:24 pm

    Giovana,

    Thanks for commenting!

    -Tim

  20. Eric Says: April 19th, 2010 at 8:52 pm

    My girlfriend and I have been looking to buy our first house for the last 2 months, have bid on many, but seem to come up short. The tax credit is definately a bonus, but it was something we wanted to get when we started this adventure, and now, we are about a week away, and still have nothing. I would like to see it extended in some way, even if it’s less money because I’m trying to get it, but everything we look at is bought up by someone else before I can even blink.

  21. Big D Says: April 20th, 2010 at 11:55 am

    Are you sharing your poll numbers with our elected officials?

  22. Tim Manni Says: April 20th, 2010 at 12:39 pm

    Hey Sean,

    I remember hearing that during C4C car prices were actually increasing (I believe we even blogged about it). I’ve said it before, the problem with these tax credits is that they don’t cater to every class of buyers that are out there; some borrowers are going to get passed over and they’re going to be really upset — especially someone like you who is actively looking.

    Thanks for commenting,
    Tim

  23. Tim Manni Says: April 20th, 2010 at 12:46 pm

    Doriann,

    Wow a repeat buyer advocating for an extension, even if it’s not for him — don’t hear that everyday. Most readers who perhaps wouldn’t qualify are disenfranchised by the fact that some get it and they don’t. However, you are hoping that a first timer will buy your place that’s for sale?

    -Tim

  24. Tim Manni Says: April 20th, 2010 at 12:48 pm

    Eric,

    Where do you live, it sounds like the market there is pretty competitive?

    -Tim

  25. Tim Manni Says: April 20th, 2010 at 12:54 pm

    Big D,

    We haven’t, no. We take a more middle-of-the-road approach. We write and publish info as to educate our readers so they can make a better-informed decision on their own (whatever that may be). We have some readers who are for it, and some who are against it.

    We presented the opportunity if any of the extension’s supporters wanted to do so.

    Thanks for asking, glad you’re taking an interest in the blog,
    Tim

  26. Susan Jerke Says: April 20th, 2010 at 6:11 pm

    I have been trying to build a house since September of last year, really believing that I’d be in it by June of this year. With an excellent credit scores (800’s), all the people that make up the process has made this experience so hard I’ve thought several times of just walking away. I’ve had to provide letters on why and what a 27.10 deposit was. I’ve had to analyse all my checks and deposits to them with letters and 6+ months later, I still haven’t signed on the construction loan. They are making it so hard I can see why no one is continuing the process.

  27. Eric Says: April 20th, 2010 at 6:47 pm

    I live in Michigan , northeast of Detroit. Today, just lost our 3rd bid on a place. Like my realtor keeps saying, “All the good ones go fast.” Most of the places we bid on have been up for maybe 3 days max, and then they are gone. It’s starting to get really frustrating to not only us, but our realtor as well. I just looked again online for places, and we’ve literally seen all the available homes for sale in our area, over 40 that are in our price range and look decent enough for us to buy.

    I’m really hoping this gets extended.

  28. Bye, Bye Credit | Ann Arbor Real Estate Information Provided by Ann Arbor Realtor - Martin Bouma Says: April 20th, 2010 at 9:43 pm

    [...] [...]

  29. Mr. PR Says: April 21st, 2010 at 12:33 pm

    I’m recently married. My wife and I are looking to buy a home both of us are frist timer I have excellent credit hers is poor my problem is she make more money and that mean they go with her credit score but everyone we talk with say it will take at least six months to get her credit into the mid 600s to low 700’s so yes we need it to be extended.

  30. Tim Manni Says: April 21st, 2010 at 5:11 pm

    Susan,

    Wow, sounds frustrating. This is all seems like a reflection of what the current obstacles are in the real estate market. Any idea to why “all the people that make up the process” are giving you such a hard time?

    Best of luck and keep us posted. Thanks for commenting,
    Tim

  31. Tim Manni Says: April 21st, 2010 at 5:17 pm

    Eric,

    Wow, sounds like the market up there is incredibly active. Michigan has received a lot of press as a high-foreclosure state. While obviously every market in Michigan isn’t suffering, it’s true, the state has had a lot of foreclosures. In your opinion, what’s causing this mad rush for real estate: cheap prices, the pending expiration of the tax credit, what?

    Great talking with you,
    Tim

  32. Tim Manni Says: April 21st, 2010 at 5:22 pm

    Mr. PR,

    Thanks for commenting! Good luck. If you guys succeed in bringing up her credit score, our readers would sure like to hear about how you guys did it. Keep us posted.

    Thanks,
    Tim

  33. Jazzy28 Says: April 22nd, 2010 at 12:23 pm

    My husband and I have been to purchase a home for 3yrs now. We first began right when the market crashed and our loan officer couldn’t find us a lender. So, we had to rent and bought a new car. Since then both our credit scores have dropped dramatically. We finally found a mortgage program that is not credit based and we are in the final stages in getting qualified. We have 3 girls and the tax credit will help out alot with becoming a new home owner. We were depending on the tax credit for some of the changes we would most likely have to make to our new home such as painting, furniture etc. So most defintely extend the tax credit if only for a few months!!!!!!!

  34. Tim Manni Says: April 22nd, 2010 at 12:28 pm

    Thanks Jazzy — hope you had a chance to vote on the poll! Best of luck finding the best home for you and your family.

    -Tim

  35. Visionary Realty News » Buyer Activity Picks Up As Deadline for Homebuyer Tax Credit Nears Says: April 22nd, 2010 at 12:53 pm

    [...] Poll: Should the homebuyer tax credit be extended again? [...]

  36. Denise Says: April 25th, 2010 at 9:05 pm

    Hello!!!!
    Quick question. I was wondering where I can find out information regarding some states creating a home buyers tax credit of their own due to the fact their foreclosure rate, etc… is still high? I believe for the state of California they have created a homebuyers tax credit of their own where it’s 5% of purchase price which starts May 1. Currently where I live there are still alot of homes on the market. Just curious.

    Thanks in advance,

    Denise

  37. Tim Manni Says: April 26th, 2010 at 12:36 pm

    Denise,

    Here is a list of descriptions of housing finance agencies (HFA) first-time homebuyer tax credit loan programs from the National Council of State Housing Agencies:

    http://www.ncsha.org/about-hfas/hfa-programs/-first-time-homebuyer-tax-credit-loan-programs

    -Tim

  38. rochelle Says: April 26th, 2010 at 7:21 pm

    I’m in the middle of a short sale, and we all know how long that takes. I’m hoping for an extension. it’s not the only motivation for me to buy now, but it would surely help a lot. I live in Miami, and I do believe that the credit has helped sales. When do you think we would know if the tax credit gets extended or not?

  39. Tim Manni Says: April 27th, 2010 at 9:01 am

    Rochelle,

    It’s hard to say in regards of whether or not the credit will be extended. This time around, the builders and the realtors aren’t advocating too hard for another extension. Technically, the credit doesn’t expire until June 30 (deal must close by then). If home sales continue to increase through the spring and summer months, the chances for another extension will be greater.

    Thanks for sharing, visit us again soon,
    Tim

  40. b. redditt Says: May 1st, 2010 at 8:36 pm

    My husband and i have been wanting to buy for 10years now.we are building and want be finished untill mid july.we were really depending on the 8000 tax credit.

  41. Joe Says: May 3rd, 2010 at 11:45 am

    I hope it is extended…all the blogs I continue to see that are not in favor of it being extended are probably folks who are not trying to sell there homes right now! In my neighborhood in New Jersey there are 62 homes listed for sale and 5 have sold in the past 4 months and it’s a very good upscale neighborhood. The tax credit should be expanded to $15,000 dollars for first time buyers, $13,000 dollars to move up buyers and $6,500 dollars for anyone else who does not qualify for either. If you are NOT trying to sell your home RIGHT NOW you have no idea of what it’s like RIGHT NOW. My home has all new baths, a new kitchen, large lot 2,300 square feet of living and is fully loaded with upgrades. I have it priced below market value and I still can not can an offer on it. It’s been on the market for 5 months. I really think anyone who opposites the tax credit has no idea of what is going on in the real world right now.

  42. Tim Manni Says: May 3rd, 2010 at 1:06 pm

    Hey Joe,

    “I really think anyone who opposites the tax credit has no idea of what is going on in the real world right now”: I don’t necessarily agree. It’s a tough market out there, that’s for sure. Unfortunately for you, the last year and a half has been a buyer’s market, not a sellers. We’ve had a lot of readers who also trying to sell their home advocate for an extension because they’re having trouble selling their homes.

    That being said, I think those that are opposed to the second extension want to see the housing market function on its own once again. Things can only return to “normal” when government programs and market supports exit the scene and housing is once-again controlled by natural, private demand.

    Good luck selling your home,

    Thanks,
    Tim

  43. Salina Says: May 5th, 2010 at 3:35 am

    Im hoping that it will be extended. I have been looking for a home for over a year now.I have put in many bids only to be told they took another offer or not getting any response
    back from the sellers. once they except an offer, they do not have the consideration to let you know. So, that leaves you hoping to hear from them.My husband and I have a VA loan,which some know it is zero down,only closing costs.There are so many investors or people with large downs, that it is making it very hard for the Veterans with a VA loan to compete.We would like to continue looking to buy, but we need more time. Many of the homes I’ve seen need paint and carpet and repairs. So the tax credit would help just to make the home decent to live in.

  44. Ana Says: June 10th, 2010 at 5:55 pm

    Q. If a second extension is granted, how soon will it be effective? Is it under consideration?

  45. Tim Manni Says: June 11th, 2010 at 2:37 pm

    Ana,

    A second extension really isn’t in the cards right now. I doubt it will happen. What may happen is they may extend the period borrowers have to close. But that’s just a rumor at this point.

    -Tim

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HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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