Realtors® have banned together with home builders in the past few months in an effort to extend the $8,000 tax credit to first-time home buyers. Their numerous campaigns and lobbying efforts seem to have finally paid off. The Senate voted last night to discontinue debate over the the extension AND expansion the $8,000 tax credit.  It is believed that this vote will lead to legislation being placed on Obama's desk by weeks end. 

The new bill has many additions that will open the door to a bigger pool of buyers. While the $8,000 tax credit will remain in effect for first-time home buyers, the bill will add a new $6,500 tax credit for some existing home owners. The reduced tax credit will be available to home owners who have lived in their current residence for five consecutive years out of the last eight years. The income restrictions will also be lifted from $75,000 to $125,000 for single taxpayers and from $150,000 to $250,000 for joint taxpayers. The proposal states that home buyers must have a ratified contract by April 30th, but home buyers have until June 30th to complete settlement.

This has been great news for the National Association of Realtors® who have seen the tax credit help the real estate market to surge in 2009.  With the added provisions and extension, Realtors® along with home builders are optimistic about the remainder of 2009 and the beginning of 2010.