Another Deadline Looms for Home-Buying Credits
March 22nd, 2010 categories: Chicago Info/News, For Buyers, For Sellers, Housing Market, Taxes
The National Association of REALTORS® cites both the first-time and repeat-buyer federal housing tax credits as providing a big boost to the recovering housing market across the nation. I’ve seen the impact of the two credits here in Chicago, too; they’ve acted as the perfect incentive, along with housing prices that are more affordable than they have been in years, to inspire Chicago buyers to get off the sidelines and into the local housing market.
But now another deadline for the two credits is looming: Buyers have to act fast to take advantage of either credit. In fact, to qualify for either credit, buyers must have their housing contracts signed and accepted by April 30. Settlement must occur by June 30.
The Washington Times has a good summary of the credits and the deadline for buyers who want to take advantage of them. Basically, though, the first-time homebuyer version provides buyers with an $8,000 tax credit. The move-up buyer credit, for buyers who aren’t purchasing their first home, provides a $6,500 credit.
Both of these credits, though, might disappear after the deadline passes.
I think this is a shame. The housing industry, both in Chicago and across the nation, is still in the beginning stages of a steady but fragile recovery. The housing credits are helping to keep that recovery going. I don’t think the disappearance of the credits will break the industry’s momentum, but it might slow it. And that’s not good for anyone.
We all want our economy to continue is own fragile recovery, right? The health of the housing industry plays a big role in this. When home sales are on the rise, the economy’s health is generally better. Why, then, wouldn’t Congress extend the housing tax credits once again? Don’t we want to keep the recovery going?
If you want to purchase a home in Chicago and take advantage of either tax credit, the time to act is now. Finding a home, making an offer and settling the transaction is a process that takes a long time. If you’re to have any hope of qualifying for the credit, you have to kick your home search into high gear now.
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