Attention all Santa Clarita home buyers! Today, Congress almost unanimously passed the extension of the home buyer tax credit. They also expanded it to include existing homeowners. There are several other details that added flexibility to the tax credit, which hadn't been included in the first go-around for most of 2009 when the first time home buyer tax credit was implemented.
Here is what you need to know:
- The Senate and House of Representatives have now both passed the extension and the expansion of the home buyer tax credit. It is now up to President Obama to sign off. It's likely he will, and soon.
- The federal tax credit will be extended through April 30, 2010, with a 60 day extension if a binding purchase contract is in place prior to the April 30th deadline.
- First time home buyers will continue to be eligible for a tax credit of up to $8,000.
- Existing homeowners will be eligible for a reduced credit of up to $6,500, so long as they have lived in their current residence for at least 5 years, of the last 8.
- This bill also increased the income levels for recipients of the tax credit. For individual tax filers, you can now earn up to $125,000 (previously $75,000), and joint filers can now earn up to $225,000 (previously $150,000). The purchase price of the home can be no more than $880,000 in either instance.
- You can claim this credit on your 2009 tax return.
- You do NOT have to repay the tax credit, so long as you live in the residence for 36 months after the purchase, and this requirement is waived for active duty military personnel who move due to a military order.
Nationally, just over a million first time home buyers become homeowners as a result of the Federal Tax Credit, which started in February 2009.
As always, please check with your accountant, CPA, or financial adviser, and see how this tax credit may, or may not fit into your own personal situation.
We expect this tax credit, especially with it having been extended to existing homeowners, to continue to stabilize home sales and moderate the housing inventory in the Santa Clarita Valley. The inventory level of homes for sale in Santa Clarita is at historic lows right now. There is quite a bit of demand, and not enough supply. Due to that fact, prices aren't dropping as much right now, and in some cases, not at all. All real estate is local, and some communities within Santa Clarita are certainly fairing better, or worse, than others.
You need a local expert to help you decipher what's going on in our local Santa Clarita real estate market. Contact The Robert and Brian Team @ Realty Executives for assistance, 661-964-1760. You can visit their local real estate website @ TheScvAgents.com!
