Homebuyer Tax Credit Extension

The U.S. Senate is seriously considering extending the $8,000 Tax Credit into 2010. Bill sponsor Josh Isakson is doing his best to patrol the Senate floor and generate support for the bill. The program boosted home sales by more than 1 million and it looks as though this program could really provide the extra push the housing market needs as well as the economy.

REALTORS, bankers, and home builders are all in support of this bill and even hope that there will be more to it than there is currently. All three would like to see the program opened up to all buyers and even extended to investors. The three have joined together and are launching a campaign in support of the extension with the tag line: "Don't Let America's Real Estate Recovery Expire."

President Barack Obama has his economic team researching the impact of the tax credit. His concern is the effect it has on new home sales. The larger concern should be what the effect on housing will be if the extension is not granted as we head into, traditionally, the slower months for real estate sales. Could inaction extend the recession? Many economists believe so.

The Tax Credit officially expires on November 30, 2009. I would like to think that the federal government will do what is in the best interest of home buyers and the economy but at this point, I just hope for some action instead of more research.