It’s estimated that approximately 2 million people qualified for the government-sponsored tax credit last year, and it’s expected that more will qualify this year despite the shorter time frame. Now that the credit has officially expired with no sign of an extension in sight, I want to know YOUR thoughts. Is now the right time to end it, or should the tax credit be extended?

Here are some pros and cons for you to consider:

Pros –  

1.)  The pressure is officially OFF!  Now there is no need to rush into buying a home that isn’t right for you, just to qualify for the credit.  

2.)  In some areas and price ranges, the tax credit caused inventory shortages with a corresponding increase in the price of homes.  This helped sellers - not buyers.  Now that the tax credit is gone – inventory will increase giving buyers a better selection of housing choices.  

3.)  The market may cool off and sellers may find price reductions are necessary to get their homes sold. 

4.) Interest rates are still at historical lows – even without a tax credit, it’s a great time to buy a home.

Cons –  

1.)   The rebate was a HUGE incentive. Now, first time buyers may be hold off in hopes that a new rebate will be put into place next year.

2.)   Much needed contributions to the housing market and greater economic health of the country may decline exponentially.

Comment and let me know what you think.