As part of the new $789 billion economic stimulus plan, first time homebuyers will receive an $8000 tax credit when they purchase a home, an increase over last year's $7500 repayable tax credit. This new non-repayable tax credit is expected to increase home sales by 500,000 units in 2009 alone, according to the National Association of Realtors. The previous repayable credit was only good until June 30th. The new, higher, non-repayable tax credit has been extended to September 1st, 2009. With more money in the homebuyers' pockets, the $8000 tax credit is expected to generate as much as $62,000 of additional economic activity per house. This extra generated revenue comes from real estate commissions, moving expenses, new furniture and appliance purchases and remodels. This will put extra money into the economy, helping buoy local businesses.
In addition to the $8000 non-repayable tax credit, the stimulus package has other incentives for homeowners. All previous energy-related tax credits have been extended through 2010. This includes purchasing and installing energy-efficient appliances, windows, doors, heating and air conditioning units and even insulation. The economic package has also allotted $2 billion to buy up foreclosures and other vacant homes, renovate them and either sell or rent them to help those neighborhoods across the country that have been the hardest hit by the record foreclosures in the recent past. If you have any questions on how this will effect Jefferson County real estate, please call me at my office (540-665-6570), via cell (304-279-1046) or email me at tommyunderwood@topproducer.com.
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