Whatâ€™s the big brouhaha about yet another extension of the $8,000 tax credit for first time homebuyers?
Senator Harry Reid wants home buyers to have until September 30, 2010 to close escrow and receive the $8,000 tax credit. But before you go out and celebrate, understand that the only buyers this extension will help are people who already were in contract to buy a home by the April 30th deadline. The proposed extension would allow only those buyers to have until September 30th to close escrow rather than the looming deadline of June 30th. Senators Johnny Isakson, R-GA, and Christopher Dodd, D-CT, are joining Senator Reid in support of the amendment. And why not? Itâ€™s a good political move and even Senators who said they would never vote for another extension will feel pressured in an election year to get behind this move.
Will it help? Sure, in a few cases where there are delays in the closing of escrow where banks may be overwhelmed or dragging their feet on short sales or where buyers are simply not able to close soon enough.
But donâ€™t look to the government to shore up the housing industry anymore for awhile. The housing market is like a bird flying the nestâ€¦at some point you have to find your own wings.