Yes, our good Uncle Sam has once more come through for us and you can benefit from Congress’s largesse.  The $8000 tax credit for first-time homebuyers has been extended through April 30, 2010.  If you have been shopping and missed the first deadline of November 30, 2009, your impulse will be to kick back and enjoy the reprieve.  If you haven’t started shopping yet, your impulse may be to say “hey, I have a lot of time now”.

But let’s face a few facts.  First of all, spring is the busiest time of the year for real estate sales.  In Minnesota, the snow, the cold, the short days and the holidays conspire to distract home buyers in November and December.  These are usually slow shopping months.  But the pace picks up in February and March.   The Parade of Homes, sponsored by the Builder’s Association, runs through mid-March.  This gets homebuyer’s out shopping. The days become longer, the snow starts to melt, spring is in the air and first time homebuyers, like Monarch butterflies, swarm around the good homes.

The deadline for the first-time homebuyer tax credit will fall right towards the end of the spring real estate market.  Spring is always a busy time, even in this down economy.  This year it will be doubly busy because of the tax credit and good homes will be in short supply. 

If I were a first-time homebuyer, I would start shopping now.  November and December are slow months without much competition from other buyers.  There will be good deals out there.  Also, the mortgage interest rates tend to drop during these months due to less demand so you will pay less for your monthly house payment.  Finally, you will have plenty of time to get it all done before the tax credit disappears and you won’t have to worry about making the deadline.

Be smart.  Plan ahead.  Beat the crowd.  Get a great house and a great mortgage.

For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs.  “Simple answers to home ownership questions”.