For many months, many of us have anxiously been waiting to see what was going to happen to the $8,000 first time homebuyers tax credit that was due to expire November 30th, 2009. Well the wait is over, yesterday Congress not only extended the tax credit but they also expanded it. Below are the changes.
-The bill would extend an $8,000, first-time home buyers’ tax credit on all house contracts entered into before April 30, 2010, and closed by June 30 the same year.
-It would create a new, $6,500 credit for existing property owners who sell their home and buy another during the same period of time.
-On top of including current home owners, legislators opened up the credit to more buyers by raising the income caps — from $75,000 to $125,000 for individual taxpayers and from $150,000 to $225,000 for married couples.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. Many critics say that these buyers would have bought anyways, I say they are absurd. Before the tax credit our housing market was only falling and for the past many months home sales have been on the rise. I believe the tax credit is the sole reason for this. I am also very excited about the extension. While in the Arizona market the $150,000 and under market has been doing very well, the over $150,000 has still been in dire straits. I believe we will see big changes in the $150,000 and up market.
Tarra Christensen
Realtor for DPR Realty
