The Future of First-time Indianapolis Home Buyer Real Estate Tax Credit

Time is running out for first-time Indianapolis home buyers to take advantage of the $8000 First-time Indianapolis Home Buyer Real Estate Tax Credit currently being offered. The deadline is to close on your Indianapolis home before December 1, 2009. So far, the tax credit has been a fair success. Nearly 1.5 million people have taken advantage of this first-time home buyer tax credit offered by our government, according to the IRS. Many Indianapolis home buyers are still hoping to cash in on the free $8000 as they seek out Indianapolis homes for sale.

There is lobbying in Congress going on now, however, to have this credit extended not only in duration but also to whom it’s offered. One senator lobbying for an extension and expansion of the first-time home buyer tax credit is our own Dan Burton. Other senators involved in various bills regarding this issue are Ben Cardin (Maryland Democrat), Debbie Stabenow (Michigan Democrat), Harry Reid (Nevada Democrat), Johnny Isakson (Georgia Republican), Howard Coble (North Carolina Republican) and John Ensign (Nevada Republican).

Not only are these senators lobbying to extend the credit but to also next time offer it to anyone who closes on a home as a primary residence. They are also proposing to increase the amount given in credit to $15,000.

Associations related to the real estate industry are particularly happy with the efforts being put forth in congress. People watching the numbers feel that the $8000 tax credit has been a success. The National Association of REALTORS® believes we will see statistics in the mid-300,000s in terms of people who will end up claiming the tax credit. They feel that the market is making a turn around and programs like those involving tax credits only help boost the state of real estate.

The Indiana Association of REALTORS® recently released an Indiana real estate comparison of counties that somewhat reflect this claim. Even though their findings reflected a continued decline in sales, the falling numbers were slowing down. This abatement shows that we are at least going in the right direction.

There is additional concern that if we completely do away with all tax credit programs, we may see a resurgence of further declining home values and sales. Experts feel that we must keep up the slight upward momentum we are seeing with an additional home buyer tax credit program.

With these kind of sentiments circulating, more analysts are coming on board to support extensions and expansions of tax credits for home buyers.

However, there are signs of trouble for the future of these credits. One is the Obama administration does not appear to be backing the efforts. Secondly, conservatives are wondering how we’re going to fund a new program that was a feat to pay for the first time, to the tune of $14 billion.

Still, experts agree that buying new homes sparks the economy in general with all the sales it subsequently produces, like new furniture, decorations, appliances, etc. Therefore, the efforts to have a program extension is likely to continue for a while.

If you’re seeking a home in the Indianapolis real estate market, or anywhere else in Indiana, know that even though time is running out, you can still take advantage of this first-time home buyer tax credit if you act now. With approximately two months left to close, it is still possible to even begin looking for a home with an Indianapolis REALTOR® now and close in time. You will likely need to make a decision rather quickly on which home you want as a safe amount of time to leave for a successful closing is approximately four-six weeks.