Great news came out of Washington today.  The 1st time home buyer tax credit has been extended until April 30th, 2010.  On top of that, there is also a new tax credit for those of you who have had a home as your primary residence for the last 5 out of 8 years and decide to buy a new primary residence.  For a couple it is a $6,500 tax credit.  For those filing separately, it is a $3,200 tax credit.  The maximum home value the tax credit will work on is $800,000.  You also cannot make more than $225,000 for a couple or $125,000 for a single buyer.

The tax credit has been wildly successful in the Chattanooga area.  Tennessee overall ranks 13th in the country for the having one of the highest number of people taking advantage of the 1st time buyer tax credit.  I have been particularly covered up this fall, even during times of the fall that are usually slow, due to 1st time home buyers trying to take advantage of the incentive before it is gone.  The home sale statistic will probably spike in October and then soften a little in November, but the December drop may not be as severe now with the new incentive.  December is always a slow month in real estate.  January may then have an unseasonably high amount of traffic with the new tax credit/  The one area of the market that hasn't been stimulated by the tax credit is the homes from $300,000 up in the Chattanooga Area.  I am glad to see that the tax credit will cover those who may not be 1st time home buyers and who may be buying homes in the $300,000 to the $800,000 price range.  I look forward to seeing what will happen.  The tax credit extent ion will also be likely to hold off a bit of the economic dip that is expected for a short time after all of the government stimulus programs are finished.   

The Walldorf Father/Son Team has seen most everything that we have listed this year sell.  It has been a great year, and we are thankful to God as we hear from other agents who have not shared the same success this year.  We are actively recruiting new homes to sell.  If you know of any, let us know.  We are a customer centered business that is about helping people not about simply helping ourselves. 

Let me know your thoughts about the tax credit.