The Senate is expected this week to pass an extension of the credit that was originally going to expire Nov. 30. Buyers who sign a purchase agreement by April 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 for move-up buyers. Previously 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 lease five years, you can claim $6,500 in credit if you buy a new home. The new house can’t cost more than $800,000 though.
Just in time to kick Washington into action, the National Association of Realtors reported that pending home sales jumped 6% today. That’s the eighth month in a row of sales increases and the longest rising streak since 2001. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” said the association’s chief economist Lawrence Yun.
I’ve a written before about the role psychology has in home purchases. No where is that topic more relevant than in what we’re seeing with the tax credit. I participated in an Internet interview last week on the housing market on the Financial Fitness Show . Jim McQuaig, a mortgage broker in Reston, Virginia, said he recently completed financing for a woman buying a $430,000 home who said the $8,000 tax credit was the incentive.Imagine that, one of the largest purchases of your life and you’re moved to do it by a tax credit worth less than 2% for the purchase price!
5 comments:
So I take it the "rich" get the tax credits, and the "poor" have to pay more? That seems so fair.....
Sounds Republican sponsored to me.
Gotta give the rich more tax cuts.
the pres. has repeatedly stated that he considers (and I agree) the 250,000 per couple mark as being the rich. So I'm not sure what 9:58 or 10:28 are talking about. Sounds like a good deal for home buyers period.
I'm sorry, but if you can afford an $800,000.00 house, you don't need a tax credit!
That's what we're talking about!
The tax credit was meant to help those who wish to buy a home AND can afford it to go ahead and make the move.
It was not intended for the wealthy to go and buy even a bigger house!
Funny, I thought the tax credit was intended to stimulate the housing market. No one that I know of that recieved it really NEEDED it. If it incentivises someone to go and purchase a home, whether it be a 100,000 or 800,000 dollar home, then I guess it's having the desired effect.
Post a Comment