My Real Estate Blog

The economic stimulus bill didn’t include what the housing industry wanted the most — a $15,000 tax credit available to any homebuyer— but Realtors are happy with what they got.

The legislation increased the current $7,500 tax credit for first-time homebuyers to $8,000 and removed a requirement that it be repaid to the government over 15 years. The bill also extended the credit until Dec. 1. The credit phases out for taxpayers with adjusted gross income of more than $75,000 ($150,000 for joint returns).

The National Association of Home Builders estimated a Senate-passed $15,000 tax credit — available to anyone, not just first-time buyers — would have generated an additional 500,000 home sales.

The National Association of Realtors thinks the slimmed-down version could stimulate up to 300,000 additional home sales.

The tax credit “will help bring first-time home buyers to the market and reduce housing inventory,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage Dallas-Fort Worth.