Senate Votes “Yes” to Extend Home Buyer Tax Credit

Yesterday the Senate voted 98-0 to pass the extension and expansion of the homebuyer tax credit and the House is expected to vote on it any day. In a recent post, I shared my reasons why the tax credit should be extended but I have found the government usually doesn’t give my opinion a lot of attention.

There is buzz on the tax credit and rightfully so. In recent months, leading up to the November 30, 2009 deadline of the tax credit, Washington housing sales have increase from 2,402 in January 2009 to 5,132 in September 2009, a 114% increase with the largest volume in July 2009 of 5,527 units. When the next NWMLS activity reports are made available look to see home sales increase (my educated opinion) to around 5,700 – 5,900 sales then slow down to 4,500 after the first year.

In the realm of Twitter, real estate agents and brokers are discussing this very topic, #taxcredit, and in the coming days I look for the topic to be highly covered by agents and media sources. According to the House’s latest Tweet, the House could vote as early as today or tomorrow.

So what is the lowdown of the tax credit extension and its expansion of the homebuyer tax credit?

– Extend the $8,000 till April 30 2010 for first time homebuyers or anyone who hasn’t owned a home in the last three years
- Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500
- The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

The story the will continue and will keep you all posted to the latest details.

Congress passes the first time homebuyer tax credit bill and now it is front of the President Obama.