The Home Buyer’s Tax Credit has been extended and some of the provisions changed since my last post on the subject.  What are the details of the new law?  Changes include:

• Extension to April 30, 2010 contract signing, and the purchaser will have until July 1, 2010 to close.
• Includes current homeowners that have used the home sold as a principal residence consecutively for 5 of the past 8 years, as well as first time home buyers.
• Increased Income Limits to $125,000 single, $250,000 married.
• $800,000 limitation on cost of purchased home.
• Purchaser must attach documentation of purchase to tax return as an anti fraud provision.

Included here is the document table as provided by National Association of Realtors Government Affairs Division, please click below to read in full:

NAR ISSUE BRIEF HOMEBUYERS TAX CREDIT

First time home buyers still get 10% of the purchase price up to $8000 as a credit, but now existing homeowners can claim up to $ 6500 if they meet the criteria. While the increase in income limits opens the pool of potential buyers in the metro area, could the newly added $800,000 cap on sales price be a stumbling block for buyers in Rye, where the median sales price is consistently over the $1,000,000 mark (the median price of the 105 single family homes sold in Rye City since the beginning of this year is $1,350,000*). A time to take a second look at fixer uppers with expansion potential? 

I tend to agree with the opinion of a recent Forbes.com article that some of the biggest winners in this scenario could be empty nesters and retirees who are planning to trade down. After selling their current home, many retirees tend to pay cash (or a high percentage of cash) to finance their downsized homes, and therefore would not be hindered by some of the recent credit restrictions that are frustrating some new potential buyers. I also think the home credit can be a boost for local singles or recently divorced parents looking for a downsized home or townhouse in the same highly rated school district.

There are 173 homes currently available at $800,000 or under in our selling area right now**- perhaps some of them deserve a look? Let me know- I would be happy to help.

*Information per WPMLS, Sales RSCD & RNSD, zip 10580, 1-1-09 to 11-7-09.

**Homes currently listed for sale $800,000 & under as per WPMLS 11-7-09 in Rye, Harrison, Mamaroneck, Rye Brook, & Port Chester N.Y.

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.