Posted at: 11/06/2009 5:29 PM | WHEC.com
Updated at: 11/06/2009 8:10 PM
By: Ray Levato

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Extension of first-time home buyer's tax credit to boost economy

It's going to be another big boost for the economy. That's what realtors are saying about the extension of the first-time home buyer’s tax credit because it's been expanded to also include current homeowners who are buying new homes. The new bill was signed by President Obama today.

Cathy Chrisley is an associate broker in the Nothnagle Spencerport office. She showed News 10NBC of her new listings just this morning. “A young couple called to want to see the house and I went ahead and showed it to them this morning.”
 
She told them that the first-time home buyer tax credit has been expanded to include people like them who already own a home. “They were thrilled. They've been kind of on the fence knowing that they wanted to buy possibly another house.”

The homebuyer tax credit changes for so-called "move up" Buyers is $6,500. You have to have lived in home consecutively for five of the last eight years. And have a Binding contract by April 30, 2010 with a Closing Deadline of July 1, 2010. And the Income limits have been raised.   
             
Chrisley said, “So now not only are we touching first-time home buyers, but we've got veterans, those of us who already own a home.”
 
Realtors say the inventory of homes for first-time home buyers is getting low and the market needs people to move up by putting their homes on the market.

Ryan Tucholski, CEO Greater Rochester Association of Realtors said, “We know for sure when people buy homes, they buy carpet, they buy furniture, they engage in the services of plumbers and contractors and roofers and that's good for the overall economy. So we know that housing is a major push in commerce.”
  
So will the couple that's thinking of moving, list their house for sale? Chrisley says yes. “Absolutely because this has been the little push over the edge that makes a difference, always, yeah.”

The manager of the Nothnagle Spencerport office said that the August-September-October period was red hot and they saw multiple offers on homes for the first time in awhile.

This will benefit a lot of people but what about the cost to the taxpayers? The economic stimulus bill signed into law today gives those tax incentives to prospective homebuyers and additional unemployment benefits. The cost to taxpayers -- $24 billion.

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