California had a great program to promote new homes. First time home buyers could purchase a brand new home and receive a $10,000 credit from the state as an incentive to act now. It was a great opportunity to lower the overall cost of purchasing a home and gave a great reason to purchase now.
The opportunity disappeared as of midnight last night. Those who had hoped to take advantage of this offer will no longer have such a great credit.
That fence that so many buyers are sitting on is disintegrating fast. This credit is gone and as of December 1st, the $8,000 credit will be gone as well. In this economy, don’t look for an extension of these credits. Most will agree that interest rates are not going to vastly improve. With December approaching quickly and an escrow lasting a minimum of 45 days (in a normal sale…several months for short sales), buyers should leap off of that proverbial fence and act now!