Will Expected Extension of Homebuyer Tax Credit Help Our Real Estate Clients?

Will the Expected Extension of the US Homebuyer Tax Credit help business in our state, be a boost for our clients, the housing market and be good for our US and local economies?

Good question, and we will all see what develops, whether the measure can be worked out between Senate and Congress, and if it passes whether Obama will sign it into law. Then we'll see how buyers and consumers react between December 1 and April 30 of next year.

WE NEED ENCOURAGEMENT FOR HOME SELLERS HERE AT RIVERSIDE COUNTY. Too many are nervous and waiting to sell their homes.

This new measure could possibly encourage more owners to be sellers, to have positive expectations and get their homes cleaned up and ready for market and sale.

The government's first-time home buyer $8,000 tax credit has inspired a lot of sales this year, estimated as many as 400,000 by the time the program ends on November 30.

US Senate negotiators have agreed on a tentative deal on extending and slightly expanding the tax credit.

•$8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April 2010 and close by the end of June 2010.
•Creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.
•Under the $8,000 tax credit extension, income limit would be raised to $125,000 a year for individuals and $225,000 for married couples.

Like most REALTORS and real estate professionals, we are concerned about business and our economy, employment in California, and are in favor of this homebuyer tax credit extension. We believe it can help improve our US and local economies, put buyer consumer money back into the markets, and assist to create jobs in this important real estate industry.