Tax Credit Update - Move-Up and First Time Buyers (APPROVED)

Obama has just signed the tax credit expansion/extension into law. It affects first time buyers, and now some move-up buyers as well.

Last week while this was still making its way through Congress, I asked readers to comment on how such a change might affect them. I received a good number of responses. Here are some highlights:

• 68% of responses were generally positive in response to the credit
• 37% indicated specifically that this credit would have positive implications for our general economic health
• 16% indicated that this specifically urges them along in plans that were loosely taking shape as-is
• 0% of responses contained comments that this would dramatically change their plans
• 26% of the responses had comments suggesting the size of the credit cause the credit to be ineffective
• 11% of the responses had comments suggesting that the credit was reaching too far up the socioeconomic ladder; either the Move-Up Buyer was being wrongfully rewarded, or that the income limits were too high
  
• 16% indicated specifically that this credit would have negative implications for our general economic health

And as a side note:

• 37% of responses had something sarcastic to say
  

Thanks to all who took the time to read, and especially to respond.


Some key points of interest with the new revision:

• Income thresholds are raised
• Move-Up buyers can claim a tax credit of up to $6500
• Dates have been extended into mid-year 2010
  

If you're buying a home next spring, here are some key qualifying dates to remember.

• April 30, 2010 : You must be under contract for your new home
• June 30, 2010 : You must be closed on your new home

And if you are now trying to figure out how this credit might now apply to your specific situation, the IRS has a basic info page, and also a scenario page that has just about every possible angle.

Keep me posted - I'm really interested to see if this has an impact on our markets. If you're interested in reading my view, I explored it right here.