First Time Buyer Credit Update
NAR officials and lobbyists as well as various politicians continue to work on an extension of the $8,000 First Time Home Buyer Credit. Lawrence Yan, the NAR’s chief economist has been quoted recently saying what a terrific success the credit has been so far. Although stronger gains in the first time buyer segment of the market were felt earlier in the year, the feeling is strong that it continues to have a big impact. This will help efforts to get an extension passed in Congress.
Senator Johnny Isakson (R-GA) recently issued a statement on the tax credit debate, saying: “I continue to work every day to find a way to extend and expand the current first-time homebuyer tax credit, which is set to expire on November 30, 2009. I believe the current first-time homebuyer tax credit has made a difference. First-time home buyers have used it and the market has stabilized slightly.”
NAR (National Association of Realtors) estimates that about 2 million first-time buyers will have taken advantage of the $8,000 credit this year.
Mr. Isakson introduced legislation October 13th that supported his statement, and would expand the $8,000 tax credit to most homebuyers. The idea already has the support of Senate Banking Committee Chairman Chris Dodd (D-CT) and could be embraced by Majority Leader Harry Reid (D-NV). Income limits for those getting the tax break would be doubled under Isakson’s bill, which is co-sponsored by Dodd. Many experts voice confidence the credit will be approved by a House and Senate
House Speaker Nancy Pelosi responded positively when asked on October 8 how she felt about a continuation of the tax credit. She also hinted that a tax break could be coming to other home buyers besides First Time Buyers. Certainly any extension will continue to help the Chattanooga and Southeast Tennessee real estate markets. The current First Time Home Buyer tax credit expired November 30, 2009. Sales must be closed by that date to qualify.
