On Thursday Oct. 8th 09, the  House of Representatives unanimously passed legislation to  extend the first-time homebuyer tax credit to veterans and  other civilian personnel stationed overseas. The legislation,  H.R. 3590, which passed the House by a vote of 416 – 0,  provides members of the armed forces, foreign and intelligence  services who have been stationed abroad for at least 90 days,  another year to take advantage of the $8,000 first-time  homebuyer tax credit.

The current first-time homebuyer  tax credit is set to expire on November 30, 2009. Pending  Senate approval and signature by the President, veterans and  other civilian personnel will remain eligible for the tax  credit until the same date in 2010.

Meanwhile,  consideration is being given to extend the tax credit to all  first-time homebuyers, not just those individuals eligible  under H.R. 3590. The House Committee on Small Business  recently held a hearing on this issue, which examined the  current state of the housing market and the impact of the  first-time homebuyer tax credit over the last year.  Information regarding this hearing, which I encourage you to  review, is available on the Small  Business Committee website

Recognizing our  nation’s ongoing military and diplomatic missions worldwide, I  am pleased the House took action to ease the transition of the  men and women undertaking these duties and help them achieve  the American dream of homeownership. At the same time, I am  also hopeful that we can more closely consider extending the  first-time homebuyer tax credit – an important tool to assist  prospective homebuyers and promote housing purchases in  today’s economy – to all Americans.

If you judge by the crazy home buying frenzy going on in San Diego, and elsewhere in California- I’d say Yes!

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But how long can this last?  And will prices continue to go down?  Lawrence Yun the Chief Economist for the National Association of Realtors doesn’t think home prices will drop anymore. Infact, San Diego and the entire state of California has seen the median house price rise for the last 5 months. The number of homes sold are up, month over month- breaking 4 and 5 year trends. It’s due to a low affordability rate and the $8,000 tax credit that’s spurring the homebuying in San Diego. The Downside, with the increase in the number of homes selling each month… house prices are starting to creep up.

So if you want to buy in San Diego, nows the time!