Second Extension of Homebuyer Tax Credit Seems Bleakby Tim Manni
What’s the latest on the homebuyer tax credit? According to a recent Bloomberg article, certain lawmakers are saying that a second extension of the homebuyer tax credit is not on the table:
“That’s not on the table,” Senate Finance Committee Chairman Max Baucus, the chamber’s top tax-writer, said today in Washington.
“I think that’s pretty much it,” said Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat.
Nor is the tax break’s chief Republican sponsor demanding an extension. “I said when we passed it before that I would not come back to the well and I’m not going to,” said Senator Johnny Isakson of Georgia.
While there’s certainly substantial opposition out there against another extension, there’s a large throng of supporters who are depending on it. The poll on this blog that asked readers if the homebuyer tax credit should be extended again has received over 1,000 votes; 87% of voters were in favor of a second extension, 12% voted against it and 1% were indifferent. The National Association of Homebuilders’ (NAHB) website (FederalHousingTaxCredit.com) that’s dedicated to the homebuyer tax credit received around three million visitors in the first three months of this year alone.
But as we’ve been saying all along, the tax credit should merely be an incentive for homebuying, not your sole reason for it. If you’re a qualified borrower, don’t let the pending expiration of the tax credit sway you from your decision to buy. NAHB Chairman Bob Jones agrees:
“Home buyers need to remember, that even though the tax credit is about to expire, conditions remain ideal to buy a home,” said Jones. “There are plenty of existing homes on the market, interest rates are at near-record lows, and prices are very competitive.”
Whether or not your goal is to take advantage of the homebuyer tax credit before the April 30 deadline, you can still begin your search for the home you need right now.”