Reported Tax Credit Extension Struggles for Support

The Cost of Buying a Home

Florida News Alert from Florida Realtors

A USA Today story published in yesterday’s Florida Realtors News inaccurately reported that the U.S. Senate passed a bill extending the closing deadline under the homebuyer tax credit for three months. That is incorrect. The Senate did vote to add that extension as an amendment to a larger bill, but that bill is struggling to find support – a bill that also includes an extension of the expired National Flood Insurance Program.

The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market. The measure has been offered as an amendment to a bill that would extend popular tax breaks and unemployment insurance benefits for jobless workers.

The current deadline requires buyers to close by June 30 to get the $8000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6500 credit.

It is not expected that the proposal would have a significant impact on future home sales as the extension covers only those buyers who had valid sales contracts in effect on April 30. As home prices continue to go down and interest rates for mortgages stay at record lows, however, sales should remain brisk.

If you need to speak to a local specialist about this call me at 305 94.6570 or leave me a note.

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