chicago-condos & Chicago Real Estate & Chicago Homes pcherry on 29 Oct 2009 03:40 pm

First Time Homebuyer Tax Credit Deadline Extended

October 29, 2009 - For any of you who haven’t heard, the $8,000 first-time homebuyer tax credit is going to be extended beyond the original December 1, 2009 deadline. The measure was agreed upon on this past Wednesday, and the credit will now be in effect well into 2010, according to an AP news article.

First time home buyers will be able to sign purchase contracts until the end of April, 2010. Closing would have to take place by the end of June 2010. Also, a reduced tax credit of $6,500 will be offered to repeat home buyers who have owned their current residences for a minimum of five years, according to the article. Most Chicago real estate experts agree that the federal tax credit has been a large incentive to many buyers. According to the National Association of Realtors, an estimated 1.2 million buyers nationwide have applied for the tax credit.

Many Chicago developers have lowered prices or in some cases even offered to match the $8,000 credit in an effort to boost sales before the old deadline. With six more months of eligibility added onto the tax credit, we’ll have to wait and see if developers continue to slash prices on Condos In Chicago. Or they may hold out a little longer in hopes that spring, typically the best time to sell condos, will boost sales right along with the $8,000 federal incentive.

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