the Stoop: Congress Extends and Expands the New Homebuyer Program

Regardless of what naysayers have said, the New Homebuyer's Tax credit has worked to prop up many communities. The current program that gave up to $8,000 in credits to new buyers and was set to expire on November 30, 2009 is nearing an extension by Congress. To appease some of these naysayers, a grand perk has been added for current homeowners looking to get into the market.

Under the new program, current homeowner who have owned their home for 5+ years are eligible for tax credits of up to $6,500 if they buy a new home. First-time homebuyers [this includes anyone who has not owned a home in the last 3 years] will still get up to $8,000 for their purchase. To qualify, buyers from both groups will have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010.

There will be an array of conservatives and naysayers that will come out heavy against this program, but remember consumption coupled with government stimulus are fundamental fiscal programs to pull macro economies out of a recession. I personally believe that these programs should have been rolled out back in October 2007 when everyone saw the housing problem exploded into a housing crisis.

This will definitely be good news for homebuilders, real estate agents, and businesses that support these industries.

Written by: Ran
ran@ourbloc.com
Follow Rannyran on Twitter @Rannyran

Live it, Love it, Share it - OURBLOC.com