Home Buyer Income Tax Credit Is Fading Away

Posted by Joe Manausa on Friday, April 9th, 2010 at 11:35am.

Housing Tax Credit ImageI've been doing a whole lot of reading this week, scouring the internet for any signs of change in the Homebuyer Income Tax Credit and have not seen anything that appears to be relevant. Many of our buyers want to know our opinion on whether the income tax credit will be extended, and thus far and have to stick with my earlier opinion that it will not be extended.

Just to reiterate and clarify the significance of the tax credit, buyers might be eligible for up to $8,000 of income tax credit immediately if they purchase a home that meets these two simple criteria:

  1. The purchase must close no later than June 30, 2010
  2. The purchase agreement must be executed no later than April 30, 2010

So, in a nutshell, the income tax credit will be coming to an end in 3 weeks for people looking to buy a home. Regardless of your price range, this is a good bit of money. If you are considering buying a home under $200,000, the tax credit very likely could return your entire down payment (on an FHA loan).

Compound that with low interest rates that have already started to rise, I would think now is not the time to procrastinate (even if there are important things going on like baseball games, dance recitals, and year-end school activities). For $8K, it might just be worth the inconvenience.

Hot Real Estate Topics

The Tallahassee Real Estate Blog is gaining national exposure on a regular basis. We have been featured on several "Top Ten Blog Posts" lists recently and have worked our way up to #2 on the Technorati Real Estate Blog Ranking List. It's been neat to see us crawl out from under our "small market" rock and gain some national prominence.

One thing that has emerged from all of this is our awareness of what articles are most popular with our readers. The following list is our top blog posts for the past three months. All have been read more than 1,000 times each, with the top blog post having been read over 6,000 times.

Top Pages On The Tallahassee Real Estate Web Site
Does The Florida Bankers Association Think You’re Stupid?
Why Now Is Not The Time To Buy A Home
Corruption In Tallahassee
How To Make An Offer On An Overpriced Home
Tallahassee Neighborhoods
How The Cap And Trade Bill Affects Real Estate
What Sellers Should Know About Lease Purchase Agreements
One Simple Way To Jump-Start The Real Estate Market
Thesis Makes The Best Real Estate Web Site
Consider Paying Home Mortgage Discount Points
Housing Tax Credit Set To Expire
How To Lower Your Property Taxes
HUD’s Proposed Rule Could Kill Seller Financing (and your home’s value!)
10 Tips To Make Sure Your Home Doesn’t Sell
The Real Estate Double Dip
Popular Downloads
The Internet Has Changed Real Estate Marketing
A True Measure Of Real Estate Depreciation
Pricing Strategy – Should You Overprice Your House?
Real Estate And Lemonade: A Housing Market Analogy
Three Keys To Selling A Home In 2010
How To Invest In Real Estate Safely

Thank you for being an active reader of our blog and remember, most of our blog posts are the result of reader questions and comments. If there is an issue or event related to real estate that you would like us to cover, just use the comments section below to send us a note (if you subscribe by email, you can click through the title of this post and it will take you to our blog on the web).

Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

1 Response to "Home Buyer Income Tax Credit Is Fading Away"

Bill Fulton wrote: To what extent do you think the end of the tax credit will effect the recent uptick in the market. Down here in Orlando, March sales were up 5% over February and 40% over March 2009. Prices have ticked up 12% from January. Two thirds of the transactions were short sales and foreclosures. The hidden positive I believe is the sudden influx of foreign buyers. I think investors may feel that we are now coming off the true bottom.

Posted on Monday, April 12th, 2010 at 9:59am.

Leave a Comment