First-time homebuyer credit’s final week: Close by Sept. 30 to claim it

September 23, 2010

Did you have contract on a house in place on April 30?

Do you meet the requirements to qualify for the expanded first-time homebuyer tax credit?

If so and you haven't closed on your new home yet, get to prodding, pleading and generally nagging whoever it takes to get the paperwork signed, sealed and delivered by next Thursday.

A week from today, Sept. 30, is when the homebuyer tax credit finally ends.

A sold sign outside a home recently for sale is seen in Arlington, Virginia on July 23, 2009. The Dow Jones industrial marked its first close above 9,000 since January after news that existing home sales rose in June for the third straight month. (UPI Photo/Alexis C. Glenn) Photo via Newscom

As we wind up this ostensibly well-intended tax credit, data is coming in that indicates that for the most part the tax break has had a negligible effect.

In Life After the Home Buyer Tax Credit for yesterday's Economix blog, Casey B. Mulligan says:

"For now, it appears that, aside from this spring's rush to meet the tax-credit deadline, the housing market after the tax credit will proceed at much the same pace it did for the time that the credit was in place."

And today, we learn that existing home sales bounced back in August.

Yes, some of those sales, which the National Association of Realtors report bases on actual property closings, probably were by folks taking advantage of the first-time homebuyer credit's extension until Sept. 30.

But not all of them.

What we must wait and hope for is the housing sector to find its natural footing now that it's not artificially propped up by the homebuyer tax credit. That seems to be happening.

"Home values have shown stabilizing trends over the past year, even as the
economy shed millions of jobs, because of the home buyer tax credit stimulus,"
said Lawrence Yun, chief economist for the National Association of Realtors.
"Now that the economy is adding some jobs, the housing market needs to
steadily improve and eventually stand on its own."

Related posts:

Want to tell your friends about
this blog post? Click the Tweet This or
Digg
This
buttons below or use the Share This
icon to spread the word via e-mail,
Facebook and other popular applications. Thanks
!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
IRS expands TAC weekday hours through April 30, and on select Saturdays through June 27

March 8, 2026

IRS Taxpayer Assistance Centers (TACs) don’t help with filing, but offer guidance on other federal…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Do you really need more than five months to close on a house?

    Kay Bell reminds us that the last deadline for eligibility for the first-time homebuyer credit looms. If you had a…

Leave your comment