"The U.S. Senate’s chief Democrat, Majority Leader Harry Reid (Nevada), said Wednesday that his party has reached a consensus to extend the first-time homebuyer tax credit, which is set to expire November 30."
Until it's signed into law, I have little faith of what any member of congress has to say. I truly hope it passes, but I expect it to be so watered down that it will have little effect on the market. For this to be effective, it needs to create urgency, which means a substantial amount of money. The last version I read about was talking $6,500 to all buyers? I don't see that amount creating a lot of urgency for the average buyer to go thru the hassles of today’s marketplace.
I agree with you about having little faith in Congress, but I think that even a stimulus of $6,500 could have a substantial impact. It is my understanding that First Time Home buyers will still receive $8,000, while the $6,500 opens it up for repeat purchasers... For many, that is something to consider at least. Case in point, my wife and I were married this past April and are closing on our new home November 20th. Without the stimulus we would not have even looked because of cash flow. Because of the stimulus, we are able to get into our first home. I still would have made the decision for $6,500 or even less. I am hoping that this continues to bring buyers into the market and remain one of the few, seemingly effective measures taken thus far.