Tax Credit is Extended

Good news all around today–the $8,000 tax credit for first time homebuyers has been extended to June 30, 2010. This action will encourage a robust housing market in the first quarter of 2010 and affect home prices.

The legislation also includes a $6,500 tax credit for people who currently own a home and want to buy up. Qualifications are owning and occupying a home for at least five of the past eight years. Buyers must have a signed contract in hand by April 30 and close by June 30.
And, the income limit has been increased too. The ceiling for single buyer income is now $125,000 and for married couples $225,000. Increasing the income limit will stimulate more purchases of pricier properties.

Merle Schneider, co-owner/broker and vice president of operations for SCHNEIDER Real Estate, is very optimistic about the future of the St. Charles housing market. “These new tax credits will encourage potential buyers who weren’t quite ready to purchase take another look around at properties in St. Charles.

“The first tax credit, which helped more than 400,000 homebuyers, is a success and now gives confidence to more homebuyers. This comes at a great time, ready for the spring 2010 buying and selling season.”

More positive indicators were released this week. Grant Hickman, a real estate expert with SCHNEIDER, notes that existing homes sales are up 9.4% in September, and pending home sales are also up, 6.1% in September. “These findings by the National Association of Realtors are exciting,” he says.

“We are making progress toward recovery. With the tax credit extension, inclusion of current homeowners, and the income increase, more buyers will see what a bargain St. Charles County is. We have a great atmosphere, excellent services and a wide range of housing stock. This week’s government actions will serve our area very well.”

Written by Myra Vandersall