Expanded Homebuyer Tax Credit Sent to President for Signature

A $24 Billion stimulus bill that includes an extended and expanded tax credit for home buyers has been sent to the President for signature. The President is expected to sign it

The tax credits, added by the Senate, center on extending the popular $8,000 credit for first-time homebuyers that was included in the stimulus package. The credit, which was to expire at the end of this month, will be available through next June as long as the buyer signs a binding contract by the end of April.

The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.

The credit, said Democratic Rep. Shelley Berkley of Nevada, a state particularly hard hit by the recession, “will allow more people to purchase a home in my district and help stop the continued downward spiral in housing prices caused by the foreclosure crisis.”

Prolonging the life of the homebuyer credit has been a priority of the real estate industry, which says it has been instrumental in beginning to turn around a market that was a major cause of the economic downturn. About 1.4 million first-time homebuyers have qualified for the credit through August, and the National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Given the strength of the lower price brackets in Pleasanton, Dublin, San Ramon, and the Tri-Valley real estate markets, it hardly seems like it is needed. But nationally, some markets continue to struggle. And the addition of a tax credit for others who are not first time buyers to purchase a home will hopefully spur more sales activity in the higher price ranges, which could use a boost. Stay tuned…

Courtesy of Yahoo News.

UPDATE: The President has signed the bill. It is now official.