Deadline Looms for Home Buyer Tax Credit
Realtors report boost in first-time home sales thanks to government program.
April 27, 2010— -- The looming deadline for the government's home tax credit has started to make prospective buyers "panicky" about missing out on the deal so many others have taken advantage of.
The $8,000 credit for first-time buyers has given the sagging housing market the boost government officials were hoping for. The National Association of Realtors estimated that 44 percent of home buyers would not have closed the deal last month without it.
First-time home buyer Toni Austin, a 30-year-old hairstylist, made an offer on a Washington, D.C.-area home last week. If the house passes inspection she will finally be a homeowner -- something she's dreamed of for years.
"It's a big step, so the nerves are definitely present," she said. "The tax credit is very important to me."
Across the country, many more prospective buyers are hoping they, too, can squeak in under the deadline.
"For the last three to four weeks we've definitely noticed that buyers are getting panicky," Atlanta realator Charlotte DeMarco said.
In Texas, realtor Sean Parsons said he's also seen the credit inspire more activity in the Dallas area.
The real estate industry has been lobbying Washington to extend the tax credit once again, but so far Friday's deadline remains.
Rising home prices and increasing mortgage and interest rates have some concerned that renewed stength in the housing market may be a temporary trend.
Though it's not too late to take advantage of the tax credit, prospective buyers need to move fast.
Experts gave three tips to get the deal in before Friday's deadline.
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