10.28.09 Further Reports of Tax Credit Extension

Senate Democrats would like to extend the homebuyer tax credit. Details are scarce as an exact agreement has not been reached yet, and an amendment for an extension of the tax credit has not been brought to the Senate floor yet. According to this source, 'about 1.5 million tax returns filed with the Internal Revenue Service have claimed the credit, at a cost of $10 billion, since it was first approved in February 2008.' This measure clearly helped boost the housing market during the economic downturn. It remains to be seen if the first-time homebuyer tax credit will simply be extended into 2010 or if it will also be expanded to include all homebuyers and how it will be phased out. An extension of the tax credit is good news for local homebuyers who can continue to take advantage of great values in the Bay Area with the added incentive of tax relief.

10.6.09 Presidential Support for Homebuyer Tax Credit Extension

For the first time, the White House confirmed that President Obama will support an extension of the first-time homebuyer tax credit beyond November of this year. There appears to be bipartisan support for this to take place.

This is excellent news for the local housing industry. There has been a tremendous amount of movement and competition among buyers over the past several months. Allowing more first-time buyers the opportunity to take advantage of this tax credit into next year will help the local market remain strong. There have been consistent indicators of a housing recovery in our area during the past few months.