The first-time home buyer tax credit and repeat homebuyers tax credit were both extended as many home buyers were going to be unable to meet a June 30 deadline to close on their home. Both tax credits have been helpful in getting more buyers into the housing market and there was concern that with countless homeowners missing the tax credit, there could be damage done to housing in general.
However, homebuyers now have until September 30 to close on their home in order to claim the tax credit. Many have attributed any improvements in the housing market over the past months to the first-time and repeat homebuyer tax credit, but a recent report on CNN Money.com made mention that gains in home prices from April may have been the result of various factors and not an improving housing market. In fact, one of the reasons that was stated for an increase in home prices was the home buyers tax credit.
Yet, many home buyers feel that now is a time which should be used to buy since home prices are low, interest rates are low, and many have been able to take advantage of the first-time home buyer tax credit or repeat home buyer tax credit. However, there was a dip in home sales after the April 30 deadline to be under contract for a home in order to qualify for one of the home buyer tax credits and many worry that the housing market may not be as strong as was thought.
While home buyers have more time in which to claim either the first-time home buyer tax credit or repeat home buyer tax credit, many believe that true housing recovery will only come when jobs are made available and unemployment begins to drop. Yet, again, home buyers who’ve been concerned over the tax credit extension now have until September 30 to close on their home so that they can qualify for this credit.