I'd like to clarify the issue of the $8,000 first time home buyer's tax credit. As of today, the deadline is still November 30. It has not yet been extended. I do, however, think that it will be extended soon. Sentaor Harry Reid is hoping to attach the proposal to an unemployment benefits bill that may reach the Senate floor this week. "We do expect this tax credit plan to be considered as a part of the unemployment bill at some point," said Regan Lachapelle, a spokeswoman for Reid.
In addition to extending the time limit for the tax credit, there are a few changes that are being propsoed. Homeowners (not just first time home buyers) buying a new primary residence would be eligible for a $6,500 tax credit if they owned their home for five consecutive years in the previous eight. That's a great addition and will enable many more people to take advantage of the tax credit. However, individuals who earn more than $125,000 annually and couples who earn more than $250,000 would not be eligible.
As soon as the extension is either passed or squashed for good, I will post an update.
If you have any questions about the tax credit or the housing market, please don't hesitate to call me any time at 623-760-8390.