To Be Or Not To Be? - Extension of the Tax Credit?

Summerville, SC real estate has been moving. At our office sales have been up significantly over the last several months and even the National Association of Realtors has reported that pending home sales are up for seven straight months now.

Many of the consumers that I have talked with are first time buyers who want to purchase before the November 30th deadline to qualify for the current $8000 tax credit. So it's no wonder that many of our government leaders including South Carolina Senator, Lindsey Graham, are pushing to not only extend the tax credit, but increase the monetary amount and open it to all buyers.

While I personally don't believe it's necessary to really raise the amount of the tax credit, I do think it would be important to open it up to all home buyers as long as the home was going to be their primary residence. It would make a huge difference to folks who have to move due to military or job transfers or have other life issues where they just need to sell and buy elsewhere. Or to those families who are looking to trade up for more space or to provide a better quality of life for their families.

It's no secret that the current tax credit has made a difference in getting first time buyers off the fence and into new homes of their own. Further proof of that is the fact that what's been selling around here in Summerville is mainly lower end affordable homes perfect for first timer's. So how is it that I read an article recently which suggested that the tax credit was a waste and should just be left to expire and die?

The article argued that no one buys a house just to get back an $8000 tax credit. I would actually agree with that, but that thinking is really missing the mark. People still buy houses to have a home, to put down roots, and if they plan on staying a while, as an investment. With the economy being so shaky, it's caused many to hold off on their home purchase. What the tax credit has done is give an extra INCENTIVE to move forward with the home purchase. And there is no doubt in my mind after seeing statistics, speaking with other agents as well as many, many consumers that the lure of that extra cash is a powerful thing.

There are no easy answers for our current economic situation and I don't envy the folks in government trying to fix this mess. The deficit is huge and growing still, but stabilizing the housing industry is vital to helping stabilize our economy. So for once, let's let the government put something back in the pockets of the American People as opposed to big businesses.