The National Association of Home Builders (NAHB) lobbied for an extension of the "First Time Buyer New Home Tax Credit" and won!!!! The extension is through April 30, 2010. And there's a bonus to the bill. There is a tax credit for anyone who buys another home and has lived in their current one over 5 years. The first-time tax credit is $8000, and the repeat buyer tax credit is $6500.
This tax credit extension has a two-pronged affect. First, it will encourage those young first-time buyers to buy a home, either a new one or an existing one. They might not have otherwise made this purchase. A current home owner is encouraged to move to a new home now, that might have otherwise waited. These two factors create a demand on the surplus of new homes, and will remove them from the market. There has been a "pent-up" demand for over a year, and the extension of tax credits will help release it. The tax credit will bring the supply and demand closer together, for a more even flow in 2010.
Three cheers and a tip of the hat to NAHB!!!!! Thanks!