Homebuyer Tax Credit Changes

Both the House and Senate have passed the new extended/expanded Homebuyer Tax Credit and it is now awaiting the President’s signature.  Previously, the first time buyer credit of $8,000 was to expire on November 30, 2009, but it will now be extended to April 30, 2010. 

The new bill also includes a $6,500 credit to qualified homeowners looking to “move up” by purchasing a replacement home for $800,000 or less.   According to the Los Angeles Times, “…the legislation would raise the qualifying income levels to $125,000 for individual filers and to $225,000 for joint filers.”  Please click here to view a full-page version of the chart above from National Association of Realtors.

Both of these credits will help sellers of  Palos Verdes real estate as they increase the pool of buyers for their properties with  “trickle up” activity from  Palos Verdes buyers who have sold their homes to to first time buyers.  And to date in 2009 Palos Verdes Peninsula has had 40 single family homes and 108 townhomes/condos sell for $800,000 or less.

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