Popular Homebuyer Credit Is Extended

The popular homebuyer tax credit was scheduled to expire by the end of November, 2009. It has now been expanded and extended by president Obama. This should encourage hordes of aspiring homebuyers to rush to claim the extra credit made possible. The real estate market ought to exhibit a rise on the crest of such an upbeat sentiment and buying activity.

Current Homeowners Also Allowed Credit

The law provides a maximum credit of $8,000 to first-time homebuyers, defined as someone who – and whose spouse – has not owned a residence during the three years prior to purchase of a home. A maximum credit of $6,500 is allowed to current homeowners buying a home between November 7, 2009 and April 30, 2010, who have employed the property being sold or vacated as their principal residence for at least five consecutive years during the last eight years.

Nearly Half Homebuying by First-timers

First-time homebuyers account for 47 percent, or nearly half, of all home purchases in the US, going by a recent survey by the NAR {National Association of Realtors}. The recent legislation should lend a further fillip to first-time buyers being able to realize the dream of owning their own homes.

American Passion for Homes Renewed

The percentage of homeownership in the US is currently 68 percent. This compares favorably with the about 40 percent rate of homeownership that is prevalent in Germany, Denmark and Austria. Only Spain has a higher 80 percent homeownership rate among its citizens. It has been estimated that Americans undertake a property transaction once in every seven years. That’s analogous to the more popular seven-year itch in another category – romance – altogether. However, the great American romance with homes is real, and shows a continuing passion, despite recession and a severe shortage of credit.