Subscribe: 
“There’s not as much sand in the hourglass as we may think.”
Jim Merrion, regional director at Re/Max Northern Illinois, telling the Tribune that first-time homebuyers are running out of time to qualify for the government’s $8,000 tax credit that expires on Dec. 1. In order to get the credit, one has to close on a sale – not just have their contact signed or loan approved – before Dec. 1.
Considering there are many unforeseen obstacles for first-time buyers, agents are advising those who are banking on getting the credit to have a purchase contract signed by early October.
Related posts:
{ 8 comments }
As a first time homebuyer who is eligible for this credit, I for one will not be pressured by this date.
If you look at a pool of buyers that are competing with me for sub-300k homes, if a majority of them are eligible for the credit and the credit ends on Dec 1, then it may be that the those homes are suddenly worth $8K less.
I have heard some agents say that this fall will be the busiest in decades as people hurry to spend their credit. I don’t buy it. The economy and unemployment just keep getting worse.
Nomadic,
See if those agents will give you an even money or better bet on that “busiest in decades” prediction. You should be able to clean up.
I’m an agent and I’m with you. Actually I bet the Feds announce an extension to the credit shortly before it expires.
I agree Art. I think there will be an extension or an increase in the credit. But as a buyer I actually hope there will not be. I think these credits are artificially propping up the market.
Joe, every agent seems to think that the bottom was yesterday — both in the market and mortgage rates. Yet I am sure they would not take that bet!
If they want the credit to work effictively and really make a difference, they need to let people use it as a down payment.
Right, Nomadic, the majority of sales at the moment are first time buyers and/or foreclosures/short sales/panicked developers. There is very little product changing hands outside of that. In the South Loop especially, a large proportion of closings are in new construction buildings based on prices agreed before this unholy mess took hold. This is completely distorting the median price.
I think we’ll see falling prices for at least another year or two before they go flat for a sustained period.
“art said: I’m an agent and I’m with you. Actually I bet the Feds announce an extension to the credit shortly before it expires.”
I’ve been hearing talk that it could go up to $15,000 AND that it wouldn’t have to be paid back. Who knows if that will actually happen but I’d be more willing to put my money on that rather than this fall being “the busiest in decades”.
Tom, you can use the credit as a down payment.
GC, the talk is very real, there is a proposal in the works for a 15k credit. You will not have to pay it back and it will remove the income restrictions and first time homebuyer restrictions.
http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR01245:|/bss/|
Comments on this entry are closed.