The House has passed the bill to extend and expand the Homebuyer Tax Credit on Wednesday, and yesterday the Senate approved the bill overwhelmingly. It is expected to be signed by President Obama within days, perhaps as early as today.  Here is a brief outline of the new, improved changes of the tax credit law, courtesy of the Oregon Association of Realtors:

Below is a summary of the new modifications in the extension and expansion of the tax credit:

1)  The $8,000 tax credit will be extended and available for first-time purchases before May 1, 2010.

2)  A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify for this provision, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

3)  Prospective purchasers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.

4)  Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.

If you’d like to see a detailed, point-by-point comprehensive list of all the specific changes and their applicability to your situation, by all means just let me know.  I’m only a phone call or email away.

What It Means:

1)  For Buyers:  Duh :^).  This should be a “slam dunk” decision if you’re thinking of buying a home — you’ll never find a better time. I know several of the finest, most experienced, honest and trusted realtors in the city who would be happy to answer your questions, counsel you regarding the best house for you to buy and have fun in your search!  Just ask!

2) For Repeat Buyers (Want to buy but need to sell and put off selling because of the market?):  NOW is the time to reconsider.  This may indeed be a wonderful window of opportunity for you.  Homes are generally priced 10-20% less than they were a year or two ago, interest rates are at historic lows, and if you meet the criteria for repeat buyers, you’ll be GIVEN $6500 on top of all that.  If we’re not at the “bottom” of the market, we’re probably pretty darn close and I’m not expecting any significant changes any time soon.  We do know that prices have continued to decline the last few months and almost all economists, both local and national, expect that as recovery occurs, it will be a very slow climb back upward.  So, if you’re thinking your home will sell for MUCH more, IF at all, in just another year or two, you’re likely in for a big disappointment.  So why not make the move now that you can get a $6500 gift on top of everything else and, while you’ll “take a hit” on the home you sell, you’ll also get a Bargain on the home you buy.