Home > Home Buying > First Time Home Buyer Tax Credit $8,000 Talks on Extension and the Effects Thereof

There are continued discussions about the extension of First Time Home Buyer $8,000 Tax Credit. This tax credit is offered by President Obama's job and recovery plan in hopes to stimulate the economy. The current plan is set to expire November 30 2009.

Although it is not certain that this bill will be extended, most Americans feel that in all likelihood, that it would. However, one should never take this as a certainty and get disappointed if it would not be extended.

The First Time Home Buyer $8,000 tax credit has been approved and extended for military personnel until November 30 2010 (1-year extension). Active military personnel (served on active duty for at least 90 days) qualifies for this Service Members Home Ownership Act of 2009.

As the dateline drawing near, Congress has submitted several proposals for extension.

Senator Ben Cardin (D-MD) introduced S.1678 to extend the $8,000 first time home buyer tax credit to June 1, 2010.

Senator Johnny Isakson (R-GA) introduces S.1230 to extend the tax credit until November 30, 2010 and expand the tax credit to $15,000 to include all home buyers.

Where all this would stand is still up for a debate.

Has the $8,000 First Time Home Buyer Make a REAL Difference in the Housing Market?

The answer is Yes and No. The first time home buyer market has definitely soared because of the tax credit, especially for the Frisco TX housing market less than $300K. The $300K market and up continues to be stagnant. There was an initial intention for when first time home buyers enter the housing market, the Sellers of these homes would move up, and overall stimulate the overall housing market. Everyone wins! However, it is my opinion that this goal was not achieved, at least not in the greater Frisco TX area.

The Frisco TX market continues to flood with foreclosure and short sale inventories. The positive side is that these inventories are moving, hence the banks are not stuck with these inventory portfolios. Many Sellers of these "first-time" homes are selling because they are in financial difficulties due to job loss, and those who do not need to sell now are not doing it for fear of near-future unemployment. The rental markets are not growing proportionally because many of these homeowners moved in with families, hence the rental market has not grown like it should.

My first time home buyers in and around the greater Frisco TX area are extremely grateful for the tax credit. I continually have lots of discussion with new clients about needing to purchase before November 30 dateline. Hence, if this credit is extended, many more will be able to enjoy this generous tax credit.

In the past, I was in favor for this tax credit extension. I still stand my ground. But if there is a better way, I will be open to look at my options. In the end, I want to put my American hat on to help overall "America" and not just my pocketbook. Somehow, the focus should be placed on Employment rather than the Housing market. When employment is stable, everyone buys anything. Not just houses.

Hey, but what do I know? I only know how to sell houses!

New Listings in Frisco, McKinney and Allen:

Related Articles:

• When to File For Your Frisco TX First Time Home Buyer $8,000 Tax Credit
• FAQs of Frisco TX First Time Home Buyers $8,000 Tax Credit
• Frisco TX First Time Home Buyer Series
• No Down Payment Mortgages Making Homeownership Dreams come true
• Frisco TX Foreclosures: So You Wanna Buying a Good Deal?