$6500 move up tax credit
Some of the increase in recent real estate sales can be attributed to the general strengthening of the economy and some to the first time home buyer’s credit.
The $8,000 has definitely made a difference and brought more buyers into the market. This enabled new people to purchase homes and those owners to move up. Fortunately, this has been extended to April 30, 2010. There has been some publicity, and as Realtors®, we think sales will increase again just before the deadline. One interesting part of this extension is that a new group of homebuyers has also been targeted. People that have lived in their home for 5 consecutive years of the last 8 are now eligible for a tax credit of $6,500.
As a Realtor®, I think that everyone knows this.
The reality, is that few people do.
As word gets out about this tax credit, we think that even more people will have an incentive to move. It is typically thought of as a “move-up” bonus, but it works in either direction. So, not only do we have the $8,000 to offer first time home buyers, we also have the $6,500 credit that affects even more people.
Interest rates are still very low. We are not sure how long they will stay at this level.