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Third Time’s the Charm: Another Tax Credit Extension?

by Mark Wellborn

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The Wall Street Journal’s Developments blog is reporting that various real estate industry groups are lobbying Capitol Hill to extend the federal home buyer tax credit for a third time.

From Developments:

The National Association of Realtors and other industry groups are beginning to make the rounds on Capitol Hill to press their case, which goes something like this: We know you’ve extended the tax credit two times already, but the housing market is still fragile, the tax credit is working, and don’t forget– you’re up for re-election soon. In other words, do you really want to own the next leg down in home prices?

Frankly, we find it highly unlikely that the credit will be extended for a third time. Opponents of the credit were less than thrilled when the idea was broached late last year to extend it for a second time, so we imagine that they will not look favorably on a third extension. But more to the point, if buyers were going to take advantage of the credit, wouldn’t they have done so at some point over the last year?

What do you think? Should the credit be extended for a third time?

See other articles related to: first-time buyers, federal tax credit

This article originally published at https://dc.urbanturf.com/articles/blog/third_times_the_charm_another_tax_credit_extension/1805

8 Comments

  1. JamesTobias said at 11:24 am on Monday February 22, 2010:

    I agree, I can’t see this happening. If you don’t take advantage of the credit by the end of April, tough luck.

  1. chaka khan said at 11:57 am on Monday February 22, 2010:

    I believe the second tax credit was a deserving one because they extended the income. I didn’t qualify on the first tax credit because of my income. However, I am not going to let any seller to sell me at a higher price because of the deadline of the tax credit. The tax-credit is $8k not a $50K. I rather get a good deal with the price of the condo and interest rate than $8000 tax credit. I say, keep the tax credit on the hardest hit states like Nevada, Florida and Arizona. No more tax credit for DC. The Sellers need to lower their price and stop being greedy. I will put my offer at the Velocity next month and I will expect to get a good deal. Here is what the government need to do, they need to lower the mortgage interest rate. Keep your stinking tax credit and lower the interest rate.  “don’t forget– you’re up for re-election soon”?? The lobbyist need to stop bullying, buying and selling the house and the senate.

  1. jag said at 12:01 pm on Monday February 22, 2010:

    I don’t think the point is that it’d be “tough luck” for prospective buyers.  It’d almost certainly cause home values to drop and slow sales.  Either you think the economy can handle that situation or you think it could bring about a second dip and prolong the recession 3+ years.

    My gut says to extend it and ween it away, e.g. 2 more months of 8K, followed by 2 months of 6k, and 2 months of 4k.  The cost of the program really is minimal when you consider the possible alternative.

  1. Dirt McGirt said at 12:04 pm on Monday February 22, 2010:

    DC will still have their $5k tax credit if the Feds back out.

  1. Richko said at 3:17 pm on Monday February 22, 2010:

    The DC $5K credit is not available (yet) for 2010 purchases. In fact, my realtor told me last month it was “dead,” but last week’s self-aggrandizing newsletter from Eleanor Holmes Norton indicated that she is trying to get it renewed for 2010.  If that actually does come to pass, I guess it would be made retroactive to the 1st of the year or something like that.

  1. Mo said at 10:57 pm on Wednesday February 24, 2010:

    Yes extend the home buyer tax credit again for a third time it will help so many people especially the ones that still can’t find jobs but can buy a first time home. I think if Obama does not extend it housing will see another big crash and prices of housing will plummet which could work in first time home buyers favor. I think either way at least for first time homebuyers will benefit if Obama extends the credit it will help and if Obama does not extend the credit there will be a big crash and first time homebuyers will find big time smokin deals!! Either way it’s going to be a first time homebuyers paradise smile!!

  1. Alicia said at 3:47 pm on Tuesday March 2, 2010:

    Yes; please extend the tax credit.  I am a first time homebuyer, single parent, and caring for an elderly mother on social security(my dad passed away last month). I wasn’t ready the first two times because of the economy, but this will be so beneficial since so many people are counting on me to house them.  I count my blessings in any way I can.

  1. cheryl said at 6:40 pm on Monday March 15, 2010:

    please extend it a third time because its hard to get a house we looking and rushing there are tons of homes out here and the banks here are acting like they do not want to let go. i have put contracts on homes and the bank can’t decide to let it go. its like they do not want to sale. so we need time to look. instead of being in a rush.

Comments are closed.

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