The US Senate just approved the legislation to extend and expand the homebuyer tax credit, provide tax refunds to companies losing money, and extend unemployment benefits. This legislation will now be forwarded to the House of Representatives, where it is expected to be quickly sent to the president to be signed into law.

There are over 2 million home buyers who have taken advantage of the current $8,000 tax credit for first-time homebuyers, which has made a big difference in the Greater Greenville real estate market.

This home homebuyer tax credit that just passed in the Senate includes the extension of the $8,000 first-time homebuyer tax credit, the expansion of this tax credit to include move-up buyers who have lived in their home as a primary residence for at least 5 years. These move-up homebuyers will be eligible for a $6,500 tax credit.

The extension and expansion of this tax credit should help further reduce our current residential listing inventory, which as of Oct. 10th was at 6745.

Also, Income limits will be increased to $225,000 for couples and $125,000 for an individual. This tax credit when signed into law by the president, will expire on April 30th, and only those folks buying homes less than $800,000 will be eligible.

If you intend to take advantage of this tax credit, this may be a good time to start making preparations. 

What type of impact do you think extending and expanding the tax credit will make in the housing market?