They've AGREED to it, but it still needs to pass a vote and get the President's signature...
USAToday is reporting that Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers. Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers. The Commerce Department said Wednesday that new home sales fell 3.6% in September, and some industry representatives blamed uncertainty about the tax credit. The tax credits would be available to home buyers who sign sales agreements by the end of April.
House leaders have also said they support extending the tax credit for home buyers. Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate. Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.
Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March. It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. "Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
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This is going to make a lot of people happy! I am particularly pleased that this is extended beyond the scope of only first time home buyers.
Janna, It will be interesting to see what ends up happening. I helped a number of first time home buyers but I think they would have all eventually bought anyway.
I think things would be such a mess on Nov 30 trying to close everything that they don't have a choice but to extend. They have also changed it to include a contract written by April 2010 instead of making us all close by a specific date. They had to address that!
Janna, good one one hand, yet I am thinking about the cost on the other end. But, what will be will be. No matter what I want or think, LOL.
Janna,
It will be interesting to see what this does if it's extended. I have had my share of canceled contracts already because of the expiration date.
We all know that whatever help we can get....we can all get...is greatly appreciated...This period has been an education for everyone as to how far reaching the effects are of the housing market.....and recovery is being seen here and there...a cause to celebrate 4th quarter !
I have had some buyers waiting for the credit to go away so sellers get really desperate..... I have mixed feelings
I wonder what will happen if they do not extend it. Better get out the magic eight ball!