It seems that it will look a little different than 2009. This new tax credit agreement is supposed to ride along with the unemployment benefits bill that is being voted on in the next 24 hours.
Here are some of the possibilities that we could see on the extension:
1) Extend to April 30th, with contracts that began by then, and escrows closed by June 30th, 2010
2) Credit will include more than first time buyers. Perhaps a 2nd time buyer. Rules are vague right now. May be guidelines about how long they owned their previous home. Or limit on the equity they pull out. Or caps on how much income they can make.
3) Oh, and the $8,000 number is rumored to be $6,500 instead.
All in all it sounds positive. Everyone seemed in such a frenzy to buy and close by the end of the year or all hell would freeze over. Now, we can wean ourselves with an extra 120 days to keep shopping. It will also be nice for the housing market, because it will allow some movement in the higher than median price points for some markets. It seemed like there was too much bidding going on in the less than median price point, and nothing but crickets (long quiet days on market) for the higher priced homes.
And dropping the credit seems fair. It's the best way to wean the people off of the system. Oh, you waited? Well, you still have a chance, but your penalty is $1,500. Now, don't wait too long this time!!!
