Tax Credit Extension Is GREAT News for Phoenix Move-Up Buyers

Tax Credit Extension Is GREAT News for Phoenix Move-Up Buyers

As you may have heard, President Obama this morning signed an extension of the first-time homebuyers' $8,000 tax credit, with an added credit of $6,500 for move-up buyers. The extension and new credit apply to home purchases occurring between today (November 6, 2009) and April 30, 2010. Purchases signed by the April 30 deadline have until July 1, 2010 to close. And military personnel serving abroad have an extra year, with their tax credit set to expire June 30, 2011.

First-Time Buyers' Credit

• Must purchase a home between November 6, 2009 and April 30, 2010.
• Must not have owned a residence during the three years prior to the purchase.
• Applies to primary residences, including single-family homes, condos, townhomes, and co-ops. Vacation homes do NOT qualify for the tax credit.
• The maximum allowable credit is 10 percent of the purchase price, up to $8,000. The total amount is determined based upon two factors: the purchase price of the home and the buyers' income.
• Income limits have been increased with the extension. They are now up to $125,000 for singles and $225,000 for married couples. Lesser credits are available for singles earning up to $145,000 and married couples earning up to $245,000.
• Whereas there was previously no limit on the purchase price, this extension caps the allowable purchase price of the property at $800,000.

Move-Up Buyers' Credit

• Must purchase a home between November 6, 2009 and April 30, 2010.
• Must have used the home they are selling as their primary residence for at least 5 consecutive years.
• Applies to primary residences, including single-family homes, condos, townhomes, and co-ops. Vacation homes do NOT qualify for the tax credit.
• The maximum allowable credit is $6,500, the total amount of which is determined based upon two factors: the purchase price of the home and the buyers' income.
• Income limits are up to $125,000 for singles and $225,000 for married couples. Lesser credits are available for singles earning up to $145,000 and married couples earning up to $245,000.
• The allowable purchase price of the property is capped at $800,000.

What this means for Phoenix buyers

Many, many first-time buyers in Phoenix have taken advantage of the $8,000 tax credit since it was passed in February of this year. People who might not otherwise have jumped into the market decided to buy a first home because of this fantastic benefit.

Now, it's Phoenix move-up buyers' turn! We continue to see excellent buys for existing homeowners looking to purchase homes in the $300K to $800K range. The values and options, coupled with the new tax credit, make this the perfect climate for move-up buyers. If you're an existing homeowner in Phoenix who's looking to move up, now is the time to get in the game. Start your search here - and give me a call at 602-595-8900. Phoenix Property Shoppe will make your move-up experience simple, stress-free, and enjoyable.

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Thinking of buying or selling a home in the Phoenix area - or know someone who is? This is the PERFECT time to think about moving up to the next home of your dreams!

Find out how we can help make the buying or selling process simple, stress-free, and enjoyable. Feel free to contact me by phone 602-595-8900 or email me.

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