First-Time Home Buyer Credit to Increase?
on August 30th, 2009 at 12:48 pmGood news for prospective homeowners across the country: it’s possible that the first-time home buyer credit will increase from $8,000 to $15,000.
As the housing market continues to struggle, new housing bills have been submitted to the House and Senate. These bills would create the following homebuyer benefits:
* Increase the first-time home buyer tax credit from $8,000 to $15,000.
* Expand the tax credit’s eligibility to apply to any buyer.
* Eliminate the $75,000/$150,000 income cap.
* Extend the tax credit for one year from the date of enactment.
Prime mortgage foreclosures and delinquencies are quickly approaching 20 percent. Many experts feel that now is the right time to increase the tax credit and that it should be available to a wider spectrum of people.
The recent 7.2 percent surge in existing home sales is almost entirely due to sales from the first-time home buyer tax credit and real estate investors feeding off of foreclosures. Hundreds of thousands of Realtors have left the business, shrinking membership in the National Association of Realtors by a double-digit rate.
If you look closer into the existing home sale numbers, it is apparent that even with home prices falling dramatically, sales of higher-priced homes are dwindling. Many home sellers aren’t trading up – they’re either trading even or buying down or just renting.
These facts are not indicative of a successful real estate market. And what has brought this country (and the world) out of our last several recessions? Real estate. Our economy could not exist without it.
So what does all of this mean for you, the prospective buyer? Now is the best time to buy! With the real estate market festering, especially in the higher-priced tier, YOU have an opportunity to benefit. When these bills pass, the $15,000 first-time homebuyer tax credit will be available to you, regardless of your current income.
Not a first time home-buyer? Despite missing out on tax credits, you’ll still be able to profit from the situation. Sales are slow and people are anxious to sell, making this the perfect opportunity for you to put those bargaining skills to the test. You dream house is waiting for you… Carpe Diem!
