Housing Tax Credit Closing Extension Helps Some; Others Finding Market Ripe With Good Deals

It's not a lot of time, but a three-month homebuyer limited tax-credit extension will help some. "I think it was one of relief by lots of homebuyers who had loans and real estate transactions in the pipeline and couldn't close by the June 30th deadline. The extension gives them the opportunity to finish up their deals and close by September 30th," says Lucien Salvant, National Association of Realtors spokesperson.

"We estimate up to 180,000" will benefit from the extension. However, if you don't currently have a loan application in, it's too late to take advantage of this federal housing tax credit. "You had to have a valid contract by April 30th," says Salvant.

But Salvant says that shouldn't discourage interested buyers because the market is ripe with other opportunity. "The good news for people who didn't take advantage of the tax credit is that the inventory is still plentiful, although it's reduced significantly from what it was a year ago, prices are affordable, and the interest rates are the lowest they've been since the 1950s." The low interest rates are, of course, a magnet for attracting buyers. However, Salvant says that while this is a good time to buy, he notes that the lending market isn't operating the way it did before the housing crisis. This, he says, should make people understand that buying a house is a good option if you plan to stay in it a while—not play the flipping gamble, hoping for a quick profit.

"The average is about seven years. Homeownership is an investment in the future, not for a quick turnaround, which a lot of people abused in the earlier part of this decade," says Salvant.

Salvant notes that the housing market's recovery is being hampered by uncertain unemployment conditions which are causing some potential buyers to wait, possibly for more breaks.

But Salvant says don't count on more tax incentives. "We have asked Congress now for three different tax credits and we've gotten them. The purpose of the tax credit was to give a quick start to the housing economy which was coming apart and sinking fast. We think it really helped. Now, it's time for the housing market to stand on its own two feet," says Salvant.

What's the future hold? Salvant says, "It's like a baby standing on its own two feet. It's going to be wobbly, it's going to take a while for things to settle in, but the housing market needs to function on its own." The housing market recovery is being hampered by the joblessness, says Salvant. "[People] are worried about how many people are going to lose their jobs. … 'If I buy a house, am I going to be able to make the payments?' That worry is on a lot of people's minds and it's beyond the housing market to solve that problem," says Salvant.

He says the magnets are there to attract homebuyers: low interest rates, good inventory, and affordable prices. "We're hoping that free enterprise—private industry—and the government can work together to create incentives for a hiring to help the jobless situation in this country," says Salvant.

As the economic job forecast remains uncertain, sellers dangle a golden carrot which promises a way for buyers to purchase a home that will save them money. Now, more than ever, sellers are highlighting features such as the home's energy efficiency and close walking distance to jobs, stores, schools, and other vital locations.

Phoebe Chongchua
		About the author:
		Phoebe Chongchua is an award-winning journalist who appears on TV, in print, and on the Internet. She's a former ABC affiliate News Reporter/Newscaster who founded Live Fit Magazine in 2004, recognizing how the journalism industry is rapidly moving online. The magazine has evolved frrom producing content only for LFM to producing much-needed video feature news stories and documentaries for companies and associations. Phoebe discovered an unfulfilled niche market and expanded LFM in order to meet the needs of a growing marektplace. Her clients are happy she did! Live Fit Magazine produces video news stories that entice viewing audiences to watch the video, spread the message, buy the product or visit the establishment. It's a creative, credible approach to marketing companies, products, and services. Few companies offer what Live Fit Magazine can do for your company in a single feature video story. Phoebe works with clients to seamlessly integrate their newly produced video into their current marketing materials. She offers expert advice on new marketing strategies and call-to-action campaigns. Her innovative efforts keep companies positioned for success and their customers regularly watching new and informative videos.
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