NAR President says another extension of the homebuyer tax credit is “unlikely”

Vicki Cox Golder, the 2010 NAR President, circulated this memo to association leaders yesterday indicating that the homebuyer tax credit will probably come to an end when the current deadline of April 30 rolls around.

As you know the deadline for the Homebuyer Tax Credit is fast approaching.  Buyers must have a contract in place by April 30, 2010 with a closing date no later than June 30, 2010 to claim the credit. We expect that REALTORS® will be asking you what NAR is doing to extend the tax credit.  NAR has had extensive discussions with our congressional allies and concluded that an additional extension of the tax credit is unlikely.  While lawmakers recognize that the tax credit helped stabilize the market, it appears that much of the benefit has been realized.   NAR is now focused on working with our REALTOR® Party champions to improve the availability of financing, which continues to be an issue.  Specifically, we are working with Congress to strengthen FHA and to help develop a new business model for the secondary mortgage market giants Fannie Mae and Freddie Mac.

If you ask me, that’s a perfect reason to hold an open house (or several!) on April 10-11 during Nationwide Open House Weekend. It’s timed strategically to give buyers enough time to shop over that weekend and negotiate a contract before the April 30, 2010 deadline.

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2 Responses to NAR President says another extension of the homebuyer tax credit is “unlikely”

  1. I think NAR and Congress has it right. I also think a small uptick in interest rates might help push some hesitant buyers off the fence. I still regularly hear in the Richmond market some consumers musing that they’ll wait for the rate to decrease.

  2. I enjoyed the article. It was very informative and I agree with Patrick. Interest rates will rise a little bit. In terms of it pushing people to buy, I doubt that very seriously. The vast majority of easy buyers have already come and go with the tax credit. Our Tampa property management company is currently managing a ton of rentals in nice neighborhoods becasue of the lack of buyers.

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