I can tell you first hand, working inside of a real estate office, the tax credit is a definite stimulus to the housing industry. Every seven seconds, another house goes into foreclosures. The inventory must be moved! There are millions of qualified buyers out there, but there is still a lot of fear, especially with those potential buyers that are afraid of losing their jobs. The tax credit is a great lure for those qualified buyers. I personally think they should extend the credit for all home buyers. There is a pent up desire for home buying, but move up buyers and investors are mostly on the sidelines. I met with an investment advisor today and he was quick to remind me that it is a great time to buy stocks when the market is low and that strategy certainly applies to the housing market. The affordability index is at its best levels in decades. With the low prices, the tax credit and record low interest rates, it is the right time to buy (and hold). Here’s more insight on the tax credit… 

From Inman News:

White House spokesman Robert Gibbs today confirmed that President Obama supports an extension of the first-time homebuyer tax credit, along with prolonging jobless benefits and health care subsidies for unemployed workers.

Briefing reporters, Gibbs said the measures don’t amount to a second stimulus plan.

Evidence of bipartisan support in the Senate for extending the first-time homebuyer tax credit was also on display Sunday on ABC’s “This Week,” with guests Sen. Charles Schumer, D-N.Y., and Sen. John Cornyn, R-Texas, finding common ground on the issue.

From the Kiplinger’s Tax Letter:

Start with the first time home buyer credit, the $8,000 break that is set to expire on Nov. 30. The credit will be extended for a few months, and lawmakers will clarify that first time purchasers don’t have to complete the sale by the expiration date to get the tax credit. They need only sign a contract. The odds are low that Congress will expand the credit to folks who aren’t first time home buyers, or increase the credit limit to $15,000.

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