Right now, It's wait and see... will the $8000 tax credit be extended?

News from the Senate...last week a bi-partisan plan found its way to the light of day that could spell good news for both buyers and sellers in the housing market.

Among the most enticing items is the proposal to stay with the current credit of $8000 for first time buyers; this credit is currently slated to expire at the end of this month-November 30. BUT...the new proposal doesn't stop there. It also calls for a NEW credit of $6500 for homeowners who want to now buy another house to use as their principal residence. To qualify, the homeowner(s) will have to have owned and lived in their current home for five consecutive years.

Currently, the household maximums for the credit are $75,000 for single buyers and $150,000 for married couples. The new plan proposes that the household income limits for the credit be raised to $125,000 for single buyers, and $250,000 for married couples, quite a leap

At the moment, there is strong bi-partisan support in the House as well, for extending the $8000 credit, but there are being some concerns voiced concerning the cost of the credit.

Currently, according to Congressional budget figures/estimates the credit is costing the Treasury some one billion dollars per month. And adding to that concern is the proposal of inviting in even more debt of a drain in the form of existing home owners (as described above).

So, it's wait and see at this point. Here's hoping that whatever comes down the pike will offer some much needed relief to sellers and buyers alike. Keep that chin up!