Now that the economic stimulus package has been enacted, the finalized measures for the home buyer tax credit are already in effect. Unfortunately, the $15,000 home buyer tax credit did not make the cut into the American Recovery and Reinvestment Act, signed into law on February 17. Instead, the existing first-time home buyer tax credit was modified to provide more money and better terms. Here’s a quick rundown of the details…
1.) Maximum amount was increased from $7,500 to $8,000
2.) Repayment is no longer required (before recipients had to pay back the tax credit over a 15-year period)
3.) Affects homes bought on or after Jan. 1 and before Dec. 1, 2009
4.) For first-time buyers and those who have not owned a primary residence for 3 years
5.) Income restrictions above $75,000 ($150,000 for married couples)
6.) Applies only to primary residences
7.) If you resell your home within 3 years of purchase, the tax credit is revoked and you will have to pay back the full amount
Industry analysts estimate the new tax credit adjustment will spark buyer activity in 2009 to the tune of 300,000 homes sold. Chicago real estate agents have already seen a buck in business in recent weeks with just the anticipation of the economic stimulus plan’s passage. Right now there is still an extensive supply of condos up for sale in Chicago, but as more and more buyers enter the marketplace selection will eventually slim down. With mortgage rates near historical lows and the selling season picking up in a month or so, now is a good time to get the ball rolling if you want to purchase a condo this year.
