NEWS 25 WEHT Evansville, Henderson, OwensboroTax Credit Deadline Approaches for First Time Homebuyers

Tax Credit Deadline Approaches for First Time Homebuyers

story by: Jamie Rose

EVANSVILLE – The time is running out for first time homebuyers looking to receive an $8,000 tax credit.  If you're looking to get the credit your paperwork has to be processed by November 30, 2009.

With a third of the business this past year coming from first time homebuyers many say they're hoping for legislators to pass an extension.

"It's been huge," Paula Winstead Haller with ERA First Advantage Realtor said. "It takes 4 to 6 weeks for a FHA loan on average, so we need to get them out there this week, buy, write offers, and it's important they have all their information available and ready."

Stacy Stevens with Landmark Realty and Development Realtor says the first time homebuyer tax credit has not only been good for buyers but also sellers.

"They're getting more dollar for their house because there's been more competition...That has helped stimulate the whole market," Stevens said.

But with the tax credit offer almost up both Haller and Stevens are like many other in the industry, waiting to see if there's going to be an extension. Right now both the House and Senate are reviewing bills that will either extend and or expand the credit to others.

Local Indiana Congressman, Brad Ellsworth, is supporting efforts for an extension, saying it adds boosts to local economies by promoting things like home construction and realtor jobs.

"It has a ripple effect in the economy,” Chris Dickson Secretary Treasurer with the Evansville Area Association of Realtors said. “People are going to Home Depot, people are going to Walmart, people are going out and buying things for their homes."

Dickson says the number of sales among Vanderburgh, Warrick, Posey, and Gibson counties is slightly up this quarter, attributing some of those to the first time homebuyer incentives.

"In fact we're taking less time to sell a house right now," Dickson said. "We're pretty optimistic."

Haller says her only worry is that once its over business will slow down, but with worries also comes some optimism.

"There are still tremendous opportunities out there," explains Dickson. "Prices are good. The interest rates are tremendously low."

Dickson says the average sale price of a home in Vanderburgh County is hovering around the $112,000, about the same that it was this time last year.