Possible Extension of First Time Buyer Tax Credit

As you may know, the maximum $8000 credit for first-time buyers expires November 30th, which has caused panic for potential first time home buyers. With the low inventory of decent and affordable bank-owned homes currently on the market here in Menifee, and from competition with Cash and Conventional buyers, our FHA buyers are really struggling to get offers accepted right now.

I recently submitted an offer, above purchase price, with no concessions, on behalf of one of my FHA buyers for a great house in the Hillpoint area. Our offer was rejected, and came to find out that we were in competition with 31 other offers, 3 of which were cash, and 4 of which were conventional.

Although it is expected that another waive of bank-owned homes will hit the market, the timing of such is unknown. And in my opinion, many FHA buyers will not be getting offers accepted until this waive hits.

Fortunately for our FHA buyers, there is a Bill in both the U.S. House and the Senate, which seek to extend the $8,000 tax credit, potentially even broadened to cover ALL buyers, not just those considered "first time" buyers.

Even though I know how frustrating it is for you first time buyers right now, hang in there, it may take a while. At least now there's hope, that when you do finally get that offer accepted, that max $8000 tax credit will still be waiting for you.

Region's home sales slip in July - PE.com - Daily News Digest