Will the home buyer tax credit get packed away?

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As the time nears to bid farewell to the popular $8,000 tax credit for first-time home buyers, sentiment is building to extend -- and maybe expand -- the program.

The tax credit is set to end Nov. 30, meaning that buyers have to agree to terms soon to get deals closed in time.

The program is part of the federal effort to resuscitate the real estate market. Realtors and home builders, along with many members of Congress, are pushing hard for an extension. They argue that although the housing market has shown signs of recovery, it still needs the help.

‘If anyone thinks this housing crisis has ended . . . that’s not the case,’ Rep. Ken Calvert (R-Corona) said. ‘There’s a significant amount of inventory throughout a large part of this country, especially in Southern California.’

He has introduced a bill to extend the credit for a year, expand it to provide $15,000 and make it available to anyone who buys a house. ‘A lot of people are still waiting on the sidelines, waiting for the clear ‘buy’ signal. I think we need to give them one.’

To read the article by Jim Puzzanghera and Tiffany Hsu, click here.

And here’s a video about the subject.