Sunday, August 16, 2009
Are we going to see a surge in home sales at the end of the year? With the tax credit expiring, that is effectively an expected increase in the price of a home (all else equal). Hmm...I am a first time homebuyer (I personally am not, but let's use the abstract version of "I"), the news about the economy is "less dire more hopeful", and I see a subsidy expiring. What do I do? The LA Times is advising you to get on the ball, and buy that home before November 30:
Reporting from Washington - First-time home buyers had better get a move on if they hope to take advantage of the $8,000 federal tax credit. The window of opportunity is closing rapidly.Will we see a big surge in November existing home sales? Possibly - even likely - that certainly is not a "seasonal" thing.
To qualify for the credit, any transaction involving a first-time buyer must close before midnight Nov. 30, when the valuable tax benefit expires. And because the buying and lending processes can be slow, you're going to need every bit of that time to close escrow.
Although the end of November might seem a long way off, Diane Dilzell, president of the New Jersey Assn. of Realtors, rightly points out that it takes weeks, if not months, to manage the logistics involved in a real estate transaction. It's also important to realize that any of a number of things can go haywire along the way.