But according to Dr. Mark Dotzour, the chief economist at the Real Estate Center at Texas A&M, “The year-over-year decline in existing home sales will be the result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales.”

In 2009 the government offered first-time home buyers an $8,000 tax credit that went into effect in January of 2009.  It was offered through November 2009 and then late in the year, it was extended to include home sales with contracts written until April 30, 2010, and closed by June 30 (extended to September 30).  Also, in November of 2009, a $6,500 tax credit was offered for qualified move-up/repeat home buyers which allowed for home sales with contracts written until April 30, 2010 and closed by September 30, 2010.

After home buyers and real estate agents fully understood the tax credit, response grew and home sales flourished in September, October and November 2009.  After the tax credit was extended to April 2010 and more people were included with the addition of the $6,500 existing repeat home buyer credit, sales for the spring of 2010 rose dramatically with March up 18 percent, April up 28 percent and May up 18 percent over the same months in 2009.

But in May 2010 the market saw a dramatic fall of pending home sales.  June and July saw a considerable drop in home sales as well.  For example, in July 2010 sales in Texas were down almost 25 percent from July of 2009.

Unless another housing tax credit is instituted, Dr. Mark Dotzour predicts that an accurate reading of the housing market conditions may not occur until June or July of 2011.

Now is a perfect time to buy a home. If you are in the market for a new home, check out SaveOnANewHome.com. We can save you thousands.

You say to yourself, “Oh, Save On A New Home, I have more than a month left to buy a house!” 

 Even though the deadline is more than a month away, to qualify, you must actually close on the house by the deadline, not just pick out your dream home.  With interest rates at some of the lowest levels in history (as of today, average 30 year fixed rates are running well below 5%), banks are bombarded with refinancings and house closings and thus the closing process is taking at least 30 days. 

Many new home builders are telling clients that the true deadline is October 31st to find that perfect dream home AND qualify for the tax credit.

What’s that mean for you?  You need to take a look at our new homes database, find a house you like, contact us at 1-866-560-1079 and get a contract on a house before the end of the month!  Don’t wait – you only have a few days left.

According to the government’s website, “Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.”

The site also goes on to say, “The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.”

Okay so that’s great, right?  Yes, it is but if you are still planning to take advantage of this plan, you need to act fast.  As of this writing, you have approximately two months to find that dream home, apply for financing, write a contract and hope to close BEFORE the deadline.  And you need to make sure you close by November 30th, 2009 because the government’s site says it must be done before the deadline of December 1st.

Rumors are swirling that the government may extend the deadline, but as of this writing the Federal Housing Tax Credit site currently has not mentioned an extension.  We’ll be sure to let you know as soon as we hear anything.

In the meanwhile, don’t panic!  We can help you.  There are plenty of new homes waiting for you to call them home.  We can help you find your dream home, arrange financing and close before the deadline.  Call us at 1-866-560-1079 for help!