I’m sure everyone is now aware that the First time home-buyer tax credit is about to expire. And I am sure that there are going to be thousands of people who will give you the blank incredulous stare when you tell them it’s too late to submit an offer and actually get it closed in time. Since, in our area, closings are taking approximately 37 days, this Friday (Oct 23) will be the drop dead date to submit offers to escrow in order to actually get them to record on time. We have to remember that we are going to lose 4 days for the Thanksgiving holiday!
I know that there are efforts in Congress to get the tax credit extended, but I am not planning on that happening. Remember – we are dealing with government which does not usually act quickly. I’m sure once March rolls around and the staggering lack of Real Estate sales for December, January and February are revealed, there may be another effort to re-instate the incentive. I just hope it is not too little too late. The sad part is that by the time the drop in Real Estate activity is analyzed and a decision is made to do something, interest rates will be to a point where the bulk of the buyers that this incentive was created to attract will not be able to qualify.
As a veteran Realtor, I know that the market will rebound and we will all look back on the late “2000’s” as a rough time in the market – but a needed adjustment and just part of the cycle of Real Estate.
