As it stands now the $8,000 first-time homebuyer tax credit will expire November 30^th.  Buyer’s who want to be assured to taking advantage of this program must act now to qualify for the credit.  To receive the credit, first-time buyer must close their purchase before December 1^st.  With most escrows now taking 45-days to close, this means buyers have another week to get in contract or risk losing the tax credit.

At this time there are several pieces of legislation in congress to extend the tax benefit for an additional year.  Included among them is a bill in the Senate (S.1678) co-sponsored by Ben Cardin (D-MD) and Harry Reid (D-NV) which is a six month extension of the tax credit.  In addition Ways and Means Committee Chairman Rangel (D-NY) has introduced a bill that would extend the benefit through 2010, but has limited eligibility for the extension to a limited group of potential purchasers.  His bill (H.R. 3590) would make the credit available to individuals who have served in the military, Foreign Service or the US intelligence community outside the US for at least 90-days or more during 2009.  This would be i

The National Association of Realtor is supporting Rangel’s bill but has asked him to include an extension for all first-time homebuyers.  The housing market is stabilizing and improving but it is clear the crisis will not be fully resolved this year.  According to the IRS, 1.4 million individuals will receive the first-time home buyer’s tax credit.  The NAR believes that approximately 25 percent of those sales would not occur during 2009 without the incentive of the tax credit.  In California, nearly 40 percent of first-time home buyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey.

The greater Sacramento area housing market has improved, but it has not yet fully corrected itself.  The first-time tax credit needs to be extended and if possible expanded in order to build upon the progress the market has made.  Any uncertainty about the future of the credit has the power to dampen consumer demand.  The best way to assure continued housing activity in Sacramento and around the country is to extend the credit and do it quickly.  I urge you, even if you are not a potential first-time home buyer to contact your congressperson and ask them to support the extension of the credit

If you, or someone you know, is a considering buying a home and is a first-time buyer, have them call or email me for help.  You can reach me by phone at (916) 290-9339 or via email at juliej@jalone.com.