The extremely popular first-time home buyer tax credit for $8000 has been extended through Apr. 30, 2010. The initial tax credit was set to expire at the end of November of this year. However, studies show that the tax credit has been working to increase home sales, reduce the inventory over the past year, and boost the overall economic conditions. According to the National Association of REALTORS®, each home sale generates about $63,000 in additional economic activity. This success led Congress to extend the credit an additional five months.
In addition to the first-time home buyer tax credit, the Congress also expanded the credit to help other buyers that are current home owners. There is a new $6500 tax credit available for homeowners who are purchasing a new primary residence and who have lived in the home for five years of the last eight years. The hope is that the new tax credit for $6500 will spark a new market of move-up buyers. This will continue to reduce the inventory and stabilize the housing market further.
So with the affordability index in Orlando at 196%(1), interest rates still at incredible lows, and an $8000 or $6500 incentive to buy…I pose the question…What More Could You Ask For?
(1) Orlando Regional Realtor Association Nov. 10, 2009