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Will Congress Extend the First Time Home Buyer Bill?

When the housing market dropped, one of the only things that kept it going was an incentive for first time home buyers to enter the market. Right now, if you have a house to sell, the buyer must make a good offer before April 30, to qualify for the rebate. The rebate is $8,000.

Needless to say, the first time home buyer incentive has moved new buyers into a market when they might not have taken the plunge otherwise.

But, when it ends, housing prices will drop. They can't do anything else. A house that was worth $100,000 to a buyer at the end of April, is only worth $92,000 on May 1. Either the buyer or the builder (or any type of seller) will absorb that loss, meaning buyers will offer less, dropping house prices.

We have a small remodeled house going on the market in the next few weeks. It will be interesting to see the effect if this bill expires.

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