The Senate HAD added in a $15k tax credit for ANY home buyer buying a home in next 12 months. The house stripped that provision out of the Senate revision claiming it was too expensive at around $22B. In its place, the house changed it back to an $8k tax credit for new home buyers ONLY (those who haven't owned a home in last 3yrs). This incentive runs from Dec 1st 2008 to Dec 1st 2009 and then expires. There is no recapture meaning the home buyer doesn't have to repay the money.
New home buyers are expected to take advantage of this, buying mostly under $200k homes. Hopefully this could help in all price ranges as those that more easily sell their lower priced homes then can buy more expensive homes and this activity should help spur activity in all price ranges as people move up the price ladder.
Almost immediately after passing this "stimulus" bill, the administration announced that now they will be looking at further stimulus bills to help with foreclosures and housing in general. Let's hope they do much more for homeowners and home buyers as many of us feel that the housing mkt is what got us in to this mess and it will be housing that can pull us out.
When its all said and done, homes still are great investments compared to the stock market and other investments and they have the added benefit of an investment that brings a great deal of happiness and one you can truly enjoy every day throughout your lifetime. Nothing comes close.
Tell everyone you know that hasn't owned a home in past few years, or are a first time buyer, about this incentive... It is a large amount of money... Right in your pocket. Rates are still well under 5% and home prices have never been better!
Information provided courtesy of Kim Jones of MetLife via Kristen Valentine
Keller Williams Realty - Atlanta Partners
Awarded 2008 Consumers Choice Award