Home buyers tax credit extension!

This week, the Senate is expected to pass an extension of the tax credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April 30th and close no later than June 30th can now claim the credit. The extension will apply to higher income buyers. Previously, the credit was available to individual filers making $75,000 a year or less. For couples the limit was $150,000. The new income limit will be $125,000 for individuals and $225,000 for couples.

There’s also something in it for move-up buyers: Before, you couldn’t claim the credit if you owned a home in the past three years. Now, if your last home was your primary residence for at least five years, you can claim $6,500 in tax credit if you buy a new home. However, the new house can’t cost more than $800,000. Hip hip hooray! I think that this is one of the few ideas that our government has actually made a good decision on. You might say: "Of course you do Nick! You are a Realtor!" But why should I, as a tax payer that is not buying a home, have to pay the bill? History, my friend. Every recession and boom has led with housing, and trust me this will help sales.

In the last three months we have had a giant increase in sales on Portland homes priced under $300k, and that is the general feeling across the country. With the added tax credit for buyers upgrading, low interest rates, and a hot market under $300k, this will spur sales in a price point that was dead. So my vote is for giving the stimulus money to the American people and let us take ourselves out of this recession. We all know the national banks are not going to.