Homeowners were worried they may be disqualified from claiming the first-time or repeat homebuyer tax credit when the original June 30 deadline seemed to be unchanging and, due to closing difficulties, many homeowners believed they would be unable to meet the timeframe given to claim the credit. However, the extension of the tax credit deadline to September 30 gave many homeowners relief since closing on homes that had met the April 30 deadline to be under contract seemed more possible since extra time was available.
However, there was concern over the tax credit and the inability of homeowners to pay for the homes that they had gotten at such an affordable rate. Home prices, mortgage interest rates, and the tax credit all combined to make more homes affordable to a wider variety of potential homeowners. However, there was a drop in home sales after the tax credit expiration date in April and many worried that housing problems would continue since homes were not being purchased.
While there have been more and more homeowners in need of mortgage assistance in their current homes, there was a report that new home sales were up from May. The report stated, “New home sales in June were up from record lows in May” but there are still troubles in certain areas of the country.
New home sales are said to be struggling, however, or for those who have a more positive view, may simply have a tougher road to travel in the future due to the fact that many homeowners are having to leave existing homes, which opens doors to homebuyers. Many builders have seen slow business over the past months due to the fact that many homebuyers, rather than build a new home, are simply looking at existing homes that are open on the market, at affordable prices, and can be obtained with a low mortgage rate.
There are mixed feelings as to where the housing market is headed, as some see negative numbers in the coming months while others believe that only improvements are to come. There is a consensus, though, that the struggling job market is the cause of many housing market difficulties that are being experienced. While it is obviously hoped that the housing market will continue to grow, many commentators point to the fact that unless more Americans are given a stable income then more homeowners will continue to suffer and unemployed men and women will be unable to either buy or keep a home.