CNBC reported on October 28th that the $8,000 First-Time Home Buyer Tax credit will be extended through April 30th, 2010 and will include a credit for “Move Up” buyers.
The reports were given by Senate Majority Leader- Harry Reid’s office to CNBC.
Earlier this week, negotiations of the credit included multiple variations of an extension as mentioned in a related blog post. The new bill is different than any of the previously mentioned bills.
The credit is to extend through April 30th for first time home buyers. Early news reported the credit would reduce to $7,290 but more recent reports state it will remain at $8,000.
The new bill also includes a $6,500 credit to “move-up buyers”. This is designed to motivate existing homeowners to sell and buy new homes. Spencer Rascoff, COO of Zillow.com, talked in his interview on Bloomberg about how approximately One-Third of all home-owners would consider selling under the right circumstances. These homes are what he called “Pent Up Supply.” Giving a tax credit to move-up buyers may help boost the market further.
The current plan is to include the tax extension in the Unemployment Extension Benefits Bill scheduled to be voted on in the next few days.
UPDATE
The bill has already been voted on and has passed through the senate. The details of the bill are finalized and I expect the bill will be signed by President Obama in the upcoming weeks.
Related posts:
This bill just passed the House and is expected to be signed by President Obama late this week.