The first time home buyer tax credit which has been responsible for as many as 50% of the home sales that have occurred this year is set to expire on November 30th. Right now the Senate is working on an extension. There are a few changes in the proposed legislation.
Fresh from the Daily Real Estate New headlines, here's the latest:
Daily Real Estate News | October 28, 2009 |
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Senate Dems on Board with Credit Extension
Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed — not closed — by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.
The credit would be cut nearly 10 percent to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.
Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)
The exciting part of the extension is the step-up provision. We may start to see some better activity in the mid and upper price ranges once the ink is dry on the new legislation.
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