Friday, November 6, 2009

Housing Tax Credit Extended and Expanded | Current Tampa Home Owners Now able to Benefit

Congress announced yesterday that the first-time home buyer tax credit, originally set to expire at the end of this month, will be extended through June of 2010. In addition to an extension, the bill includes a $6,500 credit for “move-up” buyers interested in purchasing a new primary residence.

The first-time home buyer tax credit has shown significant results in the Tampa Bay real estate market, with home sales soaring over the last three months. The Internal Revenue Services reported that more than 105,000 Floridians have applied for the credit so far. Now, under the new bill, an even larger base of potential buyers will be able to benefit and take advantage of the program.

The new plan is designed to spark interest in the “move-up” market, with these potential home buyers previous excluded for tax credit program. This additional incentive is designed to make real estate purchases even more desirable for qualified repeat buyers.

The tax credit, along with affordable home prices and low interested rates, has helped boost real estate home sales over the past year. The National Association of Realtors estimates that by the end of November, the credit will have been used by 1.8 million buyers, at least 355,000 of whom would not have purchased a home otherwise.

The new bill, which also includes an extension to unemployment benefits, is expected be signed into law today.

Wednesday, November 4, 2009

Tampa Builders, Buyers and Real Estate Professionals Anxiously Await News of Tax Credit Extension

The U.S. Congress is currently discussing an extension and expansion to the $8,000 tax credit for first-time home buyers in a bill which has been instrumental in breathing life into the U.S. real estate market. With a decision expected to be made this week, Tampa builders, Tampa buyers and Tampa real estate professionals are all anxiously awaiting the good news that is expected to continue the positive momentum in the housing market movement.

With the current tax credit expiring on November 30th of 2009, this extension would give buyers until mid-2010 to close on a new home. In addition to the extension, an additional credit of $6,500 would be created for move-up buyers who are searching for a new primary residence.

The National Association of Home Builders expects that the extended and expanded home buyer tax credit will generate 180,000 additional sales, bring in $5 billion in federal taxes and create 211,000 new jobs. Home builders, who have recently been seeing progress in the market, will directly be affected from an extension, with new homes starts already expected to increase in 2010.

Tampa Bay home builders are highly motivated, currently offering an abundance of incentives to sell inventory of their new homes to qualified buyers. Our SI Real Estate professionals have seen an increase in outreach and enticements from new local communities and our expectation is that builder and seller incentives will continue at an irresistible pace for the near term. An extension to the tax credit partnered with this abundance of builder incentives would give Tampa buyers an ideal opportunity to find the perfect new home in the new year.