There are dozens of articles on this site about the Home Buyer Tax Credit. You can see them all here.
For the most recent news about the Home Buyer Tax credit, please see this article (June 16, 2010).
Expiring last night at midnight, what started as a $7500 “credit” that was in reality an interest-free loan (it had to be paid back), then became an $8,000 fully refundable true tax credit, which was extended and modified yet again to include non-first time buyers, the home buyer tax credit offered by the federal government is no more.
Yes, if you were under contract to purchase a home by midnight on April 30, and you close on the purchase by midnight June 30, you may be eligible for the tax credit.
But with the exception of certain people in the military and other federal employees stationed overseas, there will be no more people eligible to claim the tax credit.
This will be my 24th article on the tax credit, and hopefully my last unless Arizona pulls a bone-head move like California and offers a state-level tax credit program.
Yeah, I call it bone-headed for a state with budget woes the size of California’s to spend $200 million to continue to muck about in a free market. If Arizona were to go that route, while we’re in the midst of laying off teachers, cutting protective services and more, then heads should roll out the capital doors.
The 23 previous articles here have been viewed over 178,000 times and generated 862 comments. That’s almost 400 page views a day since I started writing about the tax credit in February 2009.
Obviously interest has been high.
Personally, I’m glad it’s over. I’ve never been a fan of the government trying to prop up a free market. While we have had several clients qualify for the tax credit, none that I’m aware of bought a home because of the credit.
And that is a good thing.
In my opinion, about all the tax credit did was pull in sales that would have occurred in the near future. So we wound up robbing Peter to pay Paul. Yeah sure, a few people somewhere bought a home that they wouldn’t have (which was a bad idea), thereby (in theory) “stimulating” the housing market ”“ but at what cost?
I just re-read an article I wrote in June 2009, How the Government can Fix the “Foreclosure Crisis”, where I state the government needs to stop trying to fix the real estate market and let the laws and dynamics of a free market economy play out.
Call me crazy, but I’m sticking by that opinion, and the end of the tax credit is a big step toward letting the market adjust ”“ on its own.