$8,000 homebuyers tax credit extended

[Joseph Burkeson, CMI]

So goes it...

$8,000 homebuyers tax credit extended
President Obama reups popular tax credit through June 2010 and expands it to include people with higher incomes and some who want to trade up into new homes.

NEW YORK (CNNMoney.com) -- President Obama signed an extension and expansion of the first-time homebuyers tax credit on Friday.

The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

"The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.


Excerpt: http://money.cnn.com/2009/11/06/real...ion=2009110615

[Nick Gromicko]

Good news for U.S. inspectors.

[rmaday]

Originally Posted by gromicko

Good news for U.S. inspectors.

True, but overall, IMO it needs t go away.

When it finally does end, will all home prices drop by $8,000?

[Michael Larson]

Originally Posted by rmaday

True, but overall, IMO it needs t go away.

When it finally does end, will all home prices drop by $8,000?

And more than that.

[Joseph Burkeson, CMI]

Originally Posted by rmaday

True, but overall, IMO it needs t go away.

When it finally does end, will all home prices drop by $8,000?

Without any other market influence your logic makes perfect sense.

[Nick Gromicko]

No, they will not drop by $8,000.00. Housing is not a commodity. The $8,000 is not what is causing people to take advantage of the offer. It's the "deal" that is.

Selling homes is all about the sizzle, not the steak.