The Senate voted 85-2 in favor of extending the tax credit for first time homebuyers. The overwhelming support probably indicates that the president will likely sign the extension very soon, giving hope to all of those first time homebuyers who couldn’t quite make the 11/30/09 deadline. Here’s the need to know info on the new bill:

First time homebuyers will receive $8,000 as a pure credit (it does not need to be paid back) if they contract on a house by 4/30/09. As of right now (I will update you on any changes), the bill allows you to get under contract by 4/30/09 and close by 6/30/09. So, if you are a first time homebuyer, I would recommend aiming for an April closing date (at the latest) so you don’t have to rush at the last minute.

There is one other interesting aspect of the new bill. There is a $6500 credit for “move up” buyers. The bill stipulates that anyone who has lived in their home for 5 years will be eligible to take advantage of this $6500 if they buy a new primary residence.

I’ll have more details as they develop… Call me or email me with questions.

The Raleigh real estate market will see some benefit to this bill as there continues to be an excess inventory of foreclosure properties available. About half of the properties that are selling right now are either short sale or REO (bank owned foreclosures). This tax credit will allow the market to absorb some of this inventory, as many first time homebuyers choose to buy foreclosures. Most of the national market continues to see signs of improvement as well. I am excited about the prospect of real estate in 2010, as it remains a buyers market and people who take advantage of buying property now, will reap huge rewards when the cycle shifts back toward a seller’s market. I anticipate the Raleigh real estate market to lead the way in many categories during the next few years, especially certain locations such as downtown Raleigh real estate, and North Raleigh real estate.