Feeling the Crunch – Will the Tax Credit be Extended?

running raceMany buyers are feeling the deadline crunch and are trying to purchase a house before the November 30th deadline. That’s when the First Time Homebuyer Tax Credit expires, but the deadline is actually much earlier than that.  Here in Michigan, the banks are requiring nearly 45 days to close which puts the deadline for the tax credit only a few short weeks out.

The flurry of recent sales activity has been attributed to the First Time Homebuyer Tax Credit, which has prompted the White House to consider extending it. Spokesman Robert Gibbs says the administration’s economic team is evaluating the tax credit’s impact on new home sales and will make a recommendation to the president.

Many in the industry believe that not extending First Time Homebuyer Tax Credit could reverse the positive effects it has had on the real estate market.