Charleston South Carolina Real Estate

Lighting the fires under the recovering home market

Good news from Congress - the $8000 tax credit for new home purchases has been extended to May 1st of 2010 (pending presidential authorization). 

Home buyers under contract to purchase by April 30 will be allowed an additional 60 days to complete their transactions. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Congress has listened to the voices of the real estate industry and of those of thousands of potential home buyers.  What is even more significant is that Congress has listened to the voices of economists and experts in the business of the economic recovery . By extending this first time home buyers tax credit, Congress has made a wise move to provide needed support to the recovering real estate market.

In addition to the extension of the $8000 tax credit for new home purchases, a $6500 tax credit for repeat buyers who have lived in their previous homes for least five consecutive years, has been included.  This new step offers a strong incentive for move-up home buyers, who have been considering purchasing a new home, to take action soon. 

Another important change to these benefits is that income limits for the program have been raised: individuals can earn up to you $125,000 a year and still qualify!  For joint filers, limits have been raised up to $245,000.  These combined changes not only extend the time that these benefits are available, but they also greatly increase the pool of potential buyers who may benefit.

While we have seen significant improvements in the overall housing market over the past eight months, real estate experts believe action to provide continued support is necessary to ensure a reasonable rate of recovery.  Critics contend that providing support to the housing market is unnecessary and provides artificial pricing supports which interfere with natural market equilibrium. Congress, and most in the real estate industry, have a different view. This expansion and extension clearly expresses recognition by Congress of the importance of the health of the housing industry to the economic health of the entire nation and to the vitality and speed of international economic recovery.

Where housing goes, so goes everything else. Yes - Congress has managed to do something right!

Chris DeLoach, ABR, BIC
Chris@houseplanrealty.com
www.chrisdeloach.com
843-654-4578

Homes for sale in Charleston

Published Friday, November 06, 2009 10:23 AM by Chris DeLoach, ABR, SFR, BIC