Should the Government Extend the First-Time Homebuyer Credit?
July 13th, 2009 categories: Chicago Real Estate News
There’s no denying that the federal government’s first-time homebuyer tax credit gave a boost to the housing market in Chicago this spring. Home sales have increased in the city for four consecutive months, and a big part of the reason was the high number of buyers purchasing a Chicago condominium or single-family house for the first time.
Unfortunately, the first-time homebuyer tax credit of $8,000 comes with an expiration date. And that date is Dec. 1.
That may seem far away. But in Friday’s Chicago Tribune, columnist Mary Ellen Podmolik makes a convincing case that it’s actually not. That’s because buyers won’t be able to take out the tax credit if their real estate deal doesn’t close before Dec. 1. Notice that I said “close.” It’s not enough to have a contract signed by Dec. 1. The deal actually has to be complete.
Many in the housing industry are asking the federal government to extend the Dec. 1 deadline. The housing market’s recovery is still a fragile one, they argue. The industry needs first-time homebuyers to keep its comeback alive.
I agree. If government officials want to help boost the economy, they should extend the first-time homebuyer tax credit. I can think of few government programs that have had as positive of an effect on the national economy.
First-time homebuyers are eager to get into their first condominium or single-family home. Problem is, buying a home is a huge financial responsibility. The $8,000 tax credit has helped many first-time buyers get over their financial hurdles and into homeownership.
In case the government doesn’t extend the program, though, first-time buyers had best act quickly. It can take a long time for a real estate deal to close. You don’t want to get to Dec. 1 and miss your chance to qualify for $8,000 from the government, do you?
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