In the next two weeks, the federal Homebuyers Tax Credit will reach its conclusion.
To qualify for either the up to $8,000 first-time buyers credit or $6,000 move-up buyers credit, you need to be under contract by April 30 – less than two weeks from now – and escrow needs to close on or before June 30.
Unlike the original $7,500 credit’s November deadline, where rumors floated consistently of an extension and expansion coming down the pike, there has been next to no discussion currently of expanding the credit beyond its current deadlines.
Having said that, the tax credit alone isn’t sufficient reason for most people to purchase a home. In short, you don’t base a $100,000 or more purchase on the possibility of receiving up to $8,000 from the federal government.
But for those already in the market because of the near-historically low mortgage interest rates or the depressed prices in many markets, including my home market in Phoenix, the tax credit could serve as the final catalyst for a buying decision.
Ultimately, the decision on whether to buy relies on multiple factors particular to you – not just whether you are employed and how much you make, but how much confidence you have that the position you hold now still will be there in the next several months and/or years. Do you like the area in which you are living or are you thinking of greener horizons? Would the money you are spending now on rent be better served being used to finance your own mortgage?
While homebuying traditionally is viewed as the American dream, it’s not a realistic goal for many whether due to their income levels, employment situation or station and life. And that’s okay.
For those who are ready to settle down and have an area already selected, there are just under two weeks left not only to fulfill your own real estate goal of ownership but also to take advantage of the incentive money being handed out by the federal government.
Because, unlike last time, when this incentive is gone it appears it really will be gone.