The Federal homebuyer’s tax credit is coming to an end Nov. 30. Will it be continued, or not? That is the big question. Most economists predict that the government will give a four to six month extension, but it is hard to predict whether the dollar amount will go up or not, due to the added debt load to the federal deficit. The incentive has worked, though, creating a larger amount of people who were first-time homebuyers this year.
From my point of view, it would benefit the industry if the government extended the tax credit, but it makes me ask the question, does it benefit all of us in the end? Is it creating another false bottom on the real estate market? If I had to make a personal call, I think the government will probably continue it. This will help out Clark County real estate by continuing to dry up the overwhelming supply of houses and slow down the growth of newly built homes.
We should have a better idea of whether it will be extended as we get closer to the date. Most things I have read have predicted we will get that notice about a week before the tax credit ends. If there are updates, I will post them here!