Will there be $8000 tax credit in 2010.....Yes

My answer is a yes. Yes, our beloved Federal Government will extend the tax credit to new buyers for another year because of 2 main reasons.

1. The politicians may be fools, but they are survivalists first. The economy and stock market are both trending up on some very weak data. Any blip in the economy could send them both cascading down just in time for the 2010 elections. The number one job for Senators and Representatives in their minds is to get re-elected. They will not take the risk.
2. It is one of the few programs coming out of Washington that has worked right out of the box. The politicians need something to hang their hat on and the new homeowner tax credit is a success.

These self same politicians may even extend it to all homebuyers for the year or two. Not that I would recommend it, but the $8,000 largess from the federal government could end up a permanent fixture like the mortgage deduction.