First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday.If housing prices begin to decline again, as is widely expected, I bet Congress will listen to NAR lobbyists and bring back the tax credit in the fall.
President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.
The bill doesn't help anyone currently shopping for a home. Buyers must have signed a contract by April 30 to qualify for the tax break. At issue is when the deal must be finalized.
Qualified existing homeowners also have until Sept. 30 to close on new homes and receive a tax credit of up to $6,500.
Thursday, July 01, 2010
Congress won't let the housing tax credit die
It was originally supposed to expire last fall, but now it will live on through September.
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The day congress will bribe people with their own money has arrived.
ReplyDelete"The number of buyers who signed contracts to purchase homes dropped in May to the lowest level on record, a sign the housing recovery can't survive without government incentives."
ReplyDeleteIt's a shame what has happened to housing. It was once a stable asset class but has turned into a government funded albatross where true values of the assets are questionable at best.
This decision is stupid and unfair. I sign the contract in May and close the house yesterday, but I can not get the TAX credit. FK the government.
ReplyDeleteI'd never heard the tax credit described as a "bribe" before, but that makes a LOT of sense given what we know about how housing securities were traded (i.e. derivatives).
ReplyDeleteI have a question. Will prices in DC go down soon? Or we have to wait for some economic disaster or something??
ReplyDeleteBill
They probably wont go down Bill. However I can say with 100% certainty, they will NOT go up. NOT AT ALL!!!!!
ReplyDeleteThe most likely scenario is that prices will stay flat for the next 20-25 years until salaries catch up to the prices.
So my advice is dont buy, cause renting is cheaper. Buy a home somewhere else if you want to buy as an investment.