Looking Good for an Extended Tax Credit

By
Real Estate Agent with Cooper Spransy Realty

The current homebuyer tax credit is $8,000 for first-time home buyers who close by November 30th, 2009.  Last week the Senate agreed to extend this $8,000 tax credit for first-time homebuyers PLUS offer a $6,500 tax credit to repeat buyers who have owned their current home for at least five years. The proposed bill states that the homebuyer must have an accepted offer by April 30th, and closing by June 30th. 

The first-time homebuyer tax credit was a huge success in 2008, with 350,000 first-time buyers nationally saying they would not have otherwise purchased a home this year (according to National Association of Realtors).  But the total volume of house & condo sales in Dane County was still lower for the first 3 quarters of 2009 (4,229), compared to 2008 (4,461) - and both years are significantly lower from 2007 (5,650).  

I think the $6,500 tax credit to repeat buyers will do more to stimulate the real estate market.  House values have depreciated, and many homeowners have not been able to purchase a new home because they aren't comfortable selling in this market.  The $6,500 tax credit will move many of these people to sell and purchase a new home.  With these repeat buyers AND first-time homebuyers standing to receive a "free" tax credit from the government, there is a great chance for a significant increase in house & condo sales.

The proposed bill is awaiting approval from the House of Representatives.


If you would like to search current homes for sale in Madison WI right now, then visit www.searchmadisonmls.com.

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Rainmaker
1,007,874
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Seth:  The $8,000 tax credit for first-time buyers... also helps second and third-time move-up buyers... because it gets their house sold... so they, too, can buy another home.  It's the domino effect.

Nov 02, 2009 04:18 PM #1
Rainmaker
1,007,874
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

By the way... I see you are a relative Newbie to Active Rain... so... Welcome to Active Rain.  One suggestion I would make to you... is to join some groups, and then submit each of your post to a max of five groups.  Doing this will increase the exposure of your posts... which makes more comments possible.  Just a thought.

If you are not sure about groups... go to my profile... and look at the left side of the page.  Click on my "groups" and see which ones I have joined.  Any questions on it, please ask me.  Glad to help !

Nov 02, 2009 04:20 PM #2
Rainmaker
597,393
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Seth -

Has the Senate officially agreed yet?  I haven't heard that.  It's looking good though.

Nov 02, 2009 04:31 PM #3
Ambassador
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

The $6500 for people lived in their homes five or more years is great incentive for people to keep their existing house as a rental and obtain a primary house.

Nov 02, 2009 04:41 PM #4
Rainer
44,014
Lisa Matykiewicz
United Brokers Group - Gilbert, AZ

I like that this bill rewards existing home owners as well. 

Nov 03, 2009 01:49 AM #5
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Rainer
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Seth Peterson

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