The extension and expansion of the first-time homebuyers tax credit has reduced some area Realtors' anxiety levels.
The Worker, Homeownership, and Business Assistance Act of 2009 extends the First-Time Home Buyer Tax Credit until April 30. Home owners who purchase a new or existing home can also earn a$6,500 credit between Nov. 7 and April 30.
That should help the local real estate market sustain the current momentum, Tarheel Realty II Broker in Charge Suzanne Osborne said.
Several Realtors said they had an increase in closing in October and have several pending this month as first-time buyers tried to meet the original Dec. 1 deadline for the $8,000 tax credit.
Lake Norman Realty President Abigail Jennings said the number of closings has substantially increased within the past 30 days.
Jennings said the new credits will help stimulate the housing market and help some of the homebuyers who wanted to get more from the resale of their house.
Osborne said she closed a sale Wednesday for a young couple who wanted to purchase the house ahead of their wedding date to get the incentive.
"We were definitely trying to get everything under way as soon as we could," she said.
Doug Madison Realty Broker in Charge, Kristi Pfeufer, said closings were up 50 percent in October, and November is shaping up to be a good month as well.
"I think (the extended tax credit) is going to give these buyers an extra incentive to stay in the market," she said.
Some of the amendments to the tax credit legislation allow buyers with a binding sales contract signed by April 30 that closes by June 30 to qualify.
For sales after Thursday, the income limit went up from $75,000 to $125,000 for singles and $150,000 to $250,000 for married couples filing joint returns.
"I think that will get some of your higher price margins moving. We are keeping a positive attitude based on what we've seen the market do," Pfeufer said.
The timing of the tax credits will help as well. The winter months, particularly January, have the lowest closing rates whether the home sales market is depressed or growing, Osborne said.
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