Everyone in the real estate community is hanging on the news coming out of Washington regarding whether or not the proposal to extend the tax credit for first time home buyers will pass or be dropped. The extension is tied to proposal to extend unemployment benefits for 14 weeks in all 50 states with additional time for jobless in states hardest hit by unemployment, but additional amendments have stalled the bill and a vote for cloture will not guarantee the bill’s passage.
At issue is a tax credit that experts in the real estate community say is driving the economic recovery that has taken place since Spring, citing in particular the record home sales figures for the month of September. A dropoff in home sales since September is being blamed on the impending November 30 deadline for closing a transaction on a home in order to qualify for the tax credit.
Varied reports in the media have called the extension everything from “dead in the water” to “a done deal,” but there is no official word yet on whether the bill is even approved for debate. This article from the Washington Independent helps clarify the process of proposal to cloture to debate and how long the nation can expect to wait before anything concrete is decided.
The bottom line? Don’t assume anything! We’re guardedly optimistic, but continue stressing that the best time to buy or sell a home is right now. We’ll keep you updated as information becomes available.