Government Gives Extention of Tax Housing Credit

Near the end of November, the first time home buyer tax incentive/credit was extended to April 30th 2010. For first time home buyers, this means that if you have a contract written up and turned in by April 30th, you will get to take advantage of the $8000 tax credit. Also the credit of $6500 has been extended to second time home buyers that have lived in their homes for 5 or more years.

Here are a couple items to keep in mind when trying to take advantage of this credit. For first time home buyers, you cannot have owned a home within the past 3 years. Second, you will need to have your home mutually accepted by the 30th of April. Third, you need to close by the end of June 2010.

Another change raises the income limit from $75,000 for an individual to $125,000 and from $125,000 to $225,000 for a couple. The credit is still available on a reduction basis for those who make above these limits.

Most of our industry agrees that during the holidays we will see a slight slowdown. However, at the turn of the year there is growing anticipation of an increasing flow of buyers as they work to take advantage of the extended tax credit. It is also the general impression that come January, we will likely start to see a recovery in most areas here in Western Washington.