Posted by: union03g | November 5, 2009

As Expected, Homebuyer Tax Credit Gets Extended

Congress has voted to expand the tax credit until April 30, 2010.  Here is a link to the Bloomberg article with details. Here are two quick highlights:

  1. Homeowners owing their house for at least 5 years to receive $6,500 credit.
  2. Couples earning $225,000 per year allowed, up from $150,000.

The new adjustments to the bill were made to spur activity from the “move-up” buyer set since many think that transactions are only coming from first time buyers and investors. Many still think the criteria to get the tax credit needs to be greatly expanded to include higher “metro area” incomes and investors. RE investors are a huge part of this market and provide a foundation for prices (as long as the Alt-A mortgages aren’t being used). These credits are dangerously stickey and I think they will be around for a long time to come.

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