It’s been all over the news but now it’s a reality.

All the speculation about what the President was going sign, if it would include a $15,000 home buyer credit, a credit for all buyers and not just first time home buyers really stalled real estate sales in January and February.  Buyer were delaying closings and making offers contingent upon a $15,000 home  buyer credit becoming a reality.  That of course did not happen.  I know one agent who lost 3 sales because of it.

What we did get in this American Recovery and Reinvestment Act of 2009 was an $8,000 tax credit, available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

This credit does not require repayment and the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded.

So when we hear that the housing stats are lower then anticipated I really blame that on all the speculation and hype about the  Housing Stimulus package.

This link will show you difference between the 2008 and 2009 tax credit for home buyers

FIRST-TIME HOMEBUYER TAX CREDIT