Proposed $15,000 Homebuyer Tax Credit

: The best news for the housing market is the Senate’s proposed changes to the Home Buyer tax credit. The senate’s proposal would more directly impact the upscale home market. While the House’s version of the tax credit would have been good for the economy by targeting first time homebuyers, the senate’s proposal affects buyers in the upscale housing market. The senate’s version proposes:

• 10% up to a $15,000 tax credit if they purchase within a year
• Open to existing homeowners
• No income limits for homebuyers
• Does not require the tax credit to be paid back unless home is sold within 1st 2 years
• The credit is nonrefundable meaning you can claim the credit if you owe taxes
• Credit can be spread out over 2 years of taxes

This could be exactly what is needed to stimulate the housing market and motivate buyers to take action. The National Association of Realtors estimated the Senate measure will attract an additional one million buyers who would otherwise have remained on the sidelines. "Consumers will view the tax credit as they do lower home prices," said Lawrence Yun, NAR's chief economist. "And more people will qualify [for buying homes]."