The Obama administration has come out in favor of extending the tax credit offered to homebuyers who have not owned a primary residence in the last 3 years.
Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan issued a statement earlier today that reads, in part, "this credit has made the difference in bringing new families into the housing market. Those buyers, in turn, have reduced the inventory of unsold homes and contributed to three months in a row of increases in home prices nationwide. A stronger housing market benefits homeowners and strengthens the financial system."
And it appears that the plan may be expanded to provide a new credit of $6500 to those buyers who have owned their current primary residence for at least the last five years. In addition, there is talk of increasing the maximum qualifying income limit from $75,000 to $125,000 for an individual and to $225,000 from $150,000 for couples.
Though the proposal must still pass through both houses of Congress, it looks all but certain that the tax credit will at least be extended, and likely expanded to include more homebuyers.
I'm aware of a number of buyers who have been reluctant to make offers, especially on short sales, for fear that their deal won't close escrow in time to take advantage of the credit. An extension of the tax credit will certainly encourage more people to buy now.
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