The expansion of the First Time Home Buyer Tax Credit and the Expansion of the Tax Credit to include people who have lived in their primary residence for 5 consecutive years of the last 8 is a blessing that we all will benefit from.
Real estate agents all over were cringing as the November 30, 2009 deadline for the First Time Homebuyer Tax Credit loomed. Sure, we all got a nice surge of activity as people scurried to get in under the umbrella, but what was to happen after the fervor died down? Agents go back to throwing darts at a wall in hopes that something sticks? Sellers go back to frantically keeping their homes clean and show-ready in hopes that a buyer would come from the sky? Buyers go back to kicking tires and climbing fences?
Obama said nope Not only did he say “Nope” but he made the impact of the tax credit on America’s real estate market more pronounced by adding/expanding the original incentive to include people who have been homeowner’s in the past.
Now, first timers, second timers, third timers whatever have until April 30, 2010 to be in a binding contract and until June 30, 2010 to close to be able to benefit from the tax credit. I love the 60 day window to close! For agents it will mean not just a last minute surge, but a steady stream for a few months of closings, improved absorption rates, and active clients And for buyers and sellers it means less time-constraint stress and smoother transactions…
The beauty of the expansion is also that where the first time home buyer tax credit heavily benefited the lower price points and mid-range pricepoints (as first timers by starter homes, those sellers move up to mid-range pricepoint homes), the expansion will have the capability to trickle up to the upper echelon pricepoints as well as movement across the board is affected. Everyone wants free money, and movement in any pricepoint at this point in slow absorption will benefit the big picture.
What I’m curious to see is how this will the correction of the market time wise. Will it make the upswing of the U-Curve more noticably pronounced? Or will it make only a slight swing? Will the confidence instilled in the players in the real estate market be contagious, and if so, how will the confidence level rising in agents, builders, professionals, and buyers and sellers affect the bigger picture?
So many questions, so many benefits, and so much excitement attached to this extension and expansion…
I suppose only time will tell the answers, but for now let’s just all ride the wave
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