Home buyers get more time to close and get tax credit

Posted by: Melissa McKinney - bio | email

MONTGOMERY, AL (WSFA) - Qualified home buyers who've already signed a contract now have three more months to close and get a government tax credit.

Realtors and home buyers will tell you, the $8,000 dollar first-time home buyer tax credit was a slam-dunk.

"When we heard about the tax credit and that it was going to be ending we went ahead and decided we needed to buy now," says the Blankenship family.

"It was wonderful," says Montgomery realtor, J.R. Towne.

Towne says it kick-started the struggling housing market.

As the June 30th cut-off date for closing on a qualified home got closer, realtors hoped Congress would extend the deadline.

"I was very nervous. You'd be nervous too if you had deals sitting on the table and then the rug's pulled out from underneath you," adds Towne.

Towne says he and other realtors were thrilled when they heard about the extension giving clients until September 30th to close and still get the credit.

"It helps the realtor because they have income, and it helps the buyer because now they have the American dream.  Now they have a home."

It's a decision saving the housing market from what Towne believes may have been a slow summer.

Still he doesn't think the market will rebound without another offer.

"We do need something. Maybe a new home tax incentive to get building started back. That would help."

Towne says Montgomery showed a 37% increase in sales last month compared to national numbers that dipped 30%.

He attributes that to the different industries in Montgomery like Hyundai, and Maxwell Air Force base, and also to a lower cost of living.

The President is expected to sign the extension soon.

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