The $8,000 Cash for Homes Likely To Be Extended By Weeks End
It look like the $8k “cash for coops” (my version of cash for clunkers) will be extended until April 30 2010 when congress takes a final vote at the end of the week. While details are not finalized, it appears that the income limit will double, and there will be a new provision allowing long time homeowners to participate as well. An $800,000 pricing limit will be included.
The extension will be incorporated into a bill that will finalize the extension of the current higher conforming loan limits ($729k) that I blogged about last week. This will keep costs down in high price areas like Westchester County.
The President has indicated that he will sign the bill. This is great news for a market that has seen a bit of a slowdown since Labor Day. My view is that it is a “cash for clunkers” mentality; as soon as that program dried up, new automobile sales ground to a halt (perhaps not a Ford, which announced a $997,000,000 profit!).
I am been talking to my clients and expressing the hope that the combination of these two programs will reinvigorate the market. Until employment gets better, as much as i do not like it, the government will likely have to offer incentives to get people off the fence.
Once the program is extended, if you are considering making a move, now is the time! The benefits, historic low interest rates and lower prices combine to make this an amazing buying opportunity. It will not last forever. higher interest rates are in the future, and when they arrive it will definitely negatively impact the sales market.
So buy NOW! 
