Jeannette Karis, President
Spokane Association of REALTORS®
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Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure last week, extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama on Nov. 6.

More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years. This new incentive, along with revised income limits, is an essential feature of this legislation. Together, they expand the universe of potential purchasers. While the current first-time homebuyer credit generated substantial activity in the entry- level category of homes, inventories of “move-up” homes have remained high. Expanding the credit to purchasers who have a proven track record of homeownership should even out the current inventory.

Income limits for eligible home buyers were expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

Another element extends the tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010.

Both the National Association of REALTORS® (NAR) and the National Association of Home Builders (NAHB) have compiled facts on the changes made to the current tax credit, and readers are encouraged to talk with a Spokane REALTOR® to learn more. NAR members sent more than 500,000 letters to leaders in Congress and made nearly 13,000 telephone calls to Senate offices last weekend to encourage support. So far this year, REALTORS® have spent nearly $14 million lobbying Congress, according to federal campaign finance records compiled by the Center for Responsive Politics.

NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.

Here in Spokane, October sales figures are up 15.2% over last month, as well as 15% over October, 2008. This is good news and now with the Tax Credit extension and the move-up incentives, as we move through the winter and into next Spring, the local real estate market activity numbers should look much better.

Visit www.wahomeowners.com and www.federalhousingtaxcredit.com for updated tax credit information, and we also invite you visit www.SpokaneOpen.com and contact any of the 1,800 members of the Spokane Association of REALTORS® to help you achieve your real estate goals right here at home in the great Inland Northwest.

Jeannette Karis can be reached at President@SpokaneRealtor.com

Source: NAR & The Associated Press, Julie Davis (11/06/2009)