This morning, President Barack Obama signed into law H.R. 3548 bill, The Unemployment Compensation Extension Act that includes the extension, modification and expansion of the first time home buyer tax credit.
President Obama said, “Although it will take time and it will take patience, I am confident that our economy will recover. I am confident that we’re moving in the right direction. And I promise that I won’t rest until America prospers once again.”
Over the past few months, there has been a debate as to whether or not the first time home buyer tax credit should be extended. I believe that there are valid points made people on both sides of the argument.
At this point, my thought is that regardless of whether you believe that it should have been extended or not, the fact is … it has. As such, if you are a home buyer and you are looking to buy a home in the next year, do it during the extension period and take advantage tax credit.
Lastly, do I think that the home buyer tax credit will be extended again? We’ll have to see, but I personally think that the answer will be NO, it will not be extended. The current political thought is that for economic stimulus to work, it must create a sense of urgency.
For those interested, here is a link to the NAR Issue Brief that summarizes the Homebuyer Tax Credit changes.
