With the first time home buyer credit of $8,000, soon the expire, Congress has voted to extend this credit to the spring. Along with this, Congress also voted (403-12) for a credit for homeowners who would like to buy a new home of $6,500. The law states that these people have to have owned their home for at least the last 5 years.
The credit is available for the purchase of a principle home costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for for individuals with annual incomes above $125,000, and for joint incomes above $225,000.
Real estate agents say the first-time buyers' credit has already boosted homes sales, just as "Cash for Clinkers' helped the auto industry.The agents hope that the expanded credits will help to stabilize the housing market in the normally slower winter months.
Hopefully, when the consumer fear factor starts to disappear, the housing market can start to recover.
for more information see: http:thomes.loc.gov