First-Time Home Buyer $8,000 Tax Credit Set to Expire in One Week!

April 23rd, 2010

Homebuyer activity is picking up as the deadline for the $8,000 first-time home buyer tax credit nears, with record sales coming across the wire.

CNN reports that new home sales increased 26.9% last month - the fastest single month increase in 47 years! Also, according to the National Association of Realtors (NAR), existing homes sales rose 6.8% last month, a direct result of the homebuyer tax credit's pending expiration. Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge.

NAR chief economist Lawrence Yun said, "The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices," said Yun. "This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure."

Much like last year, homebuyer activity is picking up as the April 30, 2010 expiration date for the homebuyer tax credit rapidly approaches. The amount of demand spurred by the credit's pending expiration could very well be the deciding factor of whether or not lawmakers vote to extend the homebuyer tax credit for a second time.

Whether or not the homebuyer tax credit receives yet another extension, it doesn't change the fact that now is still a great time to buy a home (if you can properly afford it, of course). Mortgage rates are still near their historic lows and home prices, according to, are about 30% below where they were in 2006.

If you are a first-time home buyer (have not owned a home for 3 years) you still have time to take advantage of an $8,000 tax credit but you must have your contracts signed before May 1st. The tax credit, initially set to expire at the end of November 2009, has been extended to April 30, 2010.

Highlights of $8,000 First Time Home Buyer Tax Credit Expiring in One Week:

Additionally, a $6,500 credit has been added for existing homeowners who buy a new residence if they have lived in their current one for at least five consecutive years in the last eight years.

So if you are in the market, now may be the time to act to find a lender and get free expert advice in your area!

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