Big News for Pacific NW Homebuyers: Tax Credit Could Be Extended

Senate Has Reached an Agreement on Extending First-Time Homebuyer Tax Credit; Would Also Give a Credit to Existing Homeowners Looking to Buy

moneyA new article from the Wall Street Journal caught my eye, and I wanted to pass it along! Though this agreement still has to be voted on and passed, it could be big news for those who want to purchase a home in the Pacific Northwest. Originally, first-time homebuyers had until November 30th to be in their new homes to qualify for the $8,000 tax credit, but efforts are in the works to extend that deadline by another several months. It’s no surprise that the past two years have been especially hard on the housing market — not just in Northwest Washington, but everywhere — but many believe that tax credits such as these will continue to boost home sales by providing potential buyers with good incentives to purchase.

How Would the New Agreement Affect Northwest Homebuyers?

In addition to extending the existing $8,000 credit for first-time homebuyers, a new tax credit of up to $6,500 would be available to existing homeowners looking to buy a different home (as long as they’ve lived in their current residence for five consecutive years out of the last eight). Income limits have also been raised to $125,000 for single taxpayers and $250,000 for joint taxpayers. Buyers would need sales agreements completed by April 30, but would have until June 30th to finish settlement.

That’s good news for people wanting to buy a home or sell their home in Whatcom, Skagit, Island, or San Juan Counties this year!

Stay tuned — I’ll post more on this soon.  In the meantime, if you’re looking for information about buying a Pacific Northwest home, please take a look around my informative Pacific Northwest Real Estate website which provides a Buying Guide, Pacific Northwest Area Info, and my free Northwest Washington MLS Search.  My team and I are here to help, so don’t hesitate to contact me!

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