Joe Wilson's Silicon Valley Real Estate Blog

The Senate yesterday approved a bill that extends the first time buyer tax credit but also expands the program to include existing home owners. The existing $8000 tax credit for first time Buyers will now be extended to buyers whose transactions close escrow by June 30, 2010. The bill also raises the income limit for qualifying Buyers to $125,000 for singles and $225,000 for couples (up from $75,000/$150,000 in the current law). For existing home owners who have lived in their home for five years or longer, the bill provides a $6500 tax credit.  For both programs, the maximum purchase price is capped at $800,000. The bill now moves on the the House of Representatives which is expected to quickly pass it and forward it to Obama for his signature. 

So, my question for buyers still lingering on the sidelines is "what are you waiting for"? Interest rates have nowhere to go but up and these stimulus programs will go away as soon as the economy starts building up a sustainable head of steam. Right now, home prices are still relatively low, Sellers are still willing to negotiate, interest rates are near historic lows and the government will throw in $8000 as a one-time credit and substantially more in recurring tax savings. If you plan to buy a home when the time is right...this is the time.