NOVEMBER 12, 2009 ISSUE
Tax Credit for First-Time and Existing Homebuyers Extended Through April 2010
Homebuyers in the High Country now have more time to secure big tax savings. On November 6, President Barack Obama signed The Worker, Homeownership and Business Assistance Act of 2009, which includes an $8,000 tax credit for qualified first-time buyers and a $6,500 tax credit for qualified existing homeowners. This gives prospective buyers an additional six months to take advantage of the popular tax credits, which have helped boost sagging homes sales.
“With a great selection and pricing focused to sell, now is an excellent time to purchase a house,” said Carole Cox, president of the High Country Association of Realtors. “The people who took time to express their support for the tax credit extension can now benefit by buying the home of their dreams.”
The tax credits now apply to sales occurring on or after January 1 and on or before April 30, 2010. This means buyers may act before the end of 2009 or in 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, the act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. For both tax credit programs, the purchase price of the home must be less than $800,000.
The $6,500 tax credit is available to existing homeowners who have lived in their current residences for at least five years, and is also available until April 30. More information may be found by clicking to www.irs.gov/newsroom/article/0,,id=205416,00.html.
According to the National Association of Realtors, the tax credits have brought 1.2 million new buyers into the market since its inception earlier this year —350,000 of whom would not have purchased a home without the incentive.
Locally, realtors have seen the tax credit help put people in homes.
“While we don’t have firm numbers, we’ve seen a lot of sales activity in residential properties priced under $300,000,” said Cox. “That’s an indicator that the tax credit is helping people acquire their first house, which is usually in that price category,” she continued.
“In addition to helping people, the tax credits benefit the community, as well,” said Cox. “We are pleased the program will continue, because of the positive effect on housing markets and local economies.”
According to the National Association of Realtors, each home sale generates about $63,000 in downstream “ripple” effects in the economy.
More information about the High County Association of Realtors may be found by clicking to www.highcountryrealtors.org. The association is composed of members in Watauga and Avery counties and the surrounding area who maintain a marketplace where buyers and sellers can safely transfer property under the guidance of a professional held to standards of excellence.
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