Yes, dear readers, the Homebuyer Tax Credit expired last Friday and is now but a memory except in the mind of a few procrastinators who are certain that it was extended once again.
It wasn’t. In fact, an extension barely was discussed this time around. Le tax credit c’est mort, viva le tax credit.
To take advantage of the government’s $8,000 gift (unless you’re military serving overseas), you would have had to be under contract by April 30 and closing escrow by June 30. Some are expecting real estate sales to fall off a cliff now that the credit has passed. Maybe it’s the quirk of my business, in which I work with a lot of second home buyers and Canadian buyers, but I never saw the clamoring for the credit in the first place so I expect the impact to be a bit less.
It never made a great deal of sense to me to make a six-figure purchase based on an $8,000 tax credit. If you are tired of renting and can end up with a lower mortgage payment than your rent, if you want the sense of permanence that comes with owning a home, if you really like Home Depot (because that’s where you’ll be the first month after you move in regardless of condition), if you want to take advantage of what remain remarkably low interest rates, if you want to take advantage of the depressed pricing here in the Phoenix market … these all are reasons to purchase.
A tax credit? Not so much.
Fortunately, most people seem to understand this and so the Phoenix real estate world keeps on turning even after the credit has expired. Everything else is still in place, creating a great situation for some to buy and leaving still others in a position to wait. It really depends on the person.
Not sure where you fall? We can help.