Inspection Blog

Existing home sales surged 10% in October, its highest pace since February 2007.  Experts point to the first time homebuyer tax credit and increased housing affordability as the driving forces; prior to the extension, there was a flurry of activity as folks sought to beat the deadline.  Economists caution that a measurable decline should be anticipated in December and early next year, before another surge as the new deadline of April 30 approaches.

In addition to extending the tax credit for first timers, current homeowners who buy another home before April 30 can now benefit.  Here are some basics related to the tax credit for current homeowners:

• Buyers must have lived in their home for at least 5 out of the last 8 years.
• The new home must become their primary residence, but buyers don't have to sell their previous home.
• The new home does not need to be more expensive than the previous.
• Buyers cannot claim the credit if they buy from a relative.
• The tax credit is equal to 10% of the home's purchase price, up to $6,500; homes priced over $800,000 are not eligible.
• The credit also applies to new construction, so long as the contract is in place by April 30 and the buyer moves in by July 1.

For more information about the tax credits, visit http://www.federalhousingtaxcredit.com/