Huge Win for Home Buyers

The U.S. Congress and administration recently extended the popular and successful $8,000 first-time home buyers tax credit through April 30, 2010. However, they didn’t just extend the credit; they also expanded it to include a $6,500 tax credit for current homebuyers who qualify.

The legislation also raised income eligibility. Single buyers making up to $125,000 and married couples making up to $225,000 can now qualify.

Economists laud the tax credit as a major factor contributing to the scores of first-time home buyers who entered the market this year. According to NAR research, 47 percent of all home sales were entry-level buyers, compared to 41 percent a year ago.

NAR data shows that the tax credit has contributed approximately $22 billion to the general economy. Each home purchase generates about $63,000, the equivalent of about one new job.

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