First-time homebuyers and now current homeowners are eligible for big tax credits if they choose to invest in a new house. And those trying to sell say this couldn't come at a better time.
The U.S. government has extended an $8,000 tax credit for first time homebuyers. It's also added a new $6,500 tax credit for anyone who has owned a home for at least 5 years over the last 8 years. And any single person who makes less than $125,000 a year or a couple making less than $225,000 can also cash in but they have until April 30th to get a contract accepted.
Realtors typically expect the holidays to be a pretty slow time. But with these incentives even now things are picking up. Realtor Dorothy Willoughby with McKay and Company expects the tax credits to keep generating activity in the $120,000 to $150,000 range especially in the case of first time homebuyers. But she says this new tax credit for current homeowners could encourage people to trade up into homes above $200,000.
Willoughby says on top of the tax credits interest rates are at a historic low. After the holidays she expects things to really pick up starting in January.
