Will The First Time Homebuyer Credit be Extended?

As the deadline for the First Time Homebuyer Credit looms near, many are wondering whether or not that deadline will be extended. After all, it is undeniable that the credit helped to give the real estate market the shot in the arm that it needed to start feeling a pulse once again. At the same time, many are concerned that the deadline came far too quickly for many interested people to take advantage of the credit. After all, finding and closing on a home can take several months and, since the tax credit was implemented so quickly, many people weren't even made aware of the credit in time to take advantage of it.

As might be expected, many groups and organizations have been advocating for an extension to be made on the tax credit. Among the most vocal organizations are those that represent housing and real estate interests. This is quite understandable as it is already too late for many people to take advantage of this credit, as all of the new regulations and guideline that have been recently set into place have significantly increased the amount of time it takes to close on a real estate sale.

According to many sources, Republicans who had previously worked in the real estate business have been pushing for the tax credit deadline to be expanded. After all, the months spanning from December through February have historically been the worst months in the real estate market. Therefore, by ending the tax credit incentive at the end of November, the market will essentially be getting hit by a double whammy.

On the other end of the spectrum, those who are opposed to the extension are concerned about the country's growing budget deficit and the amount of government spending that is already taking place. Therefore, those who are in favor of extending the deadline will their work cut out for them in terms of getting the opposition on board.

So, what are the chances that we will see an extension? According to many experts, we are likely to see some sort of extension to the credit, though it may not be to the extent that some would like to see. Already, Congress is talking about extending the deadline for military personnel. Too many, this serves as a promising indication that additional extensions will soon follow, making it possible for even more people to take advantage of this attractive tax break.