Friday was a great day for our housing market! On Friday, President Obama signed into law the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit.

In addition to extending the first time homebuyers credit of up to $8,000, the new bill calls for an incentive for existing homeowners as well. Homeowners who have owned their current homes at least five years are now eligible for tax credits of up to $6,500 when they purchase a new home. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill contains the provision that homebuyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase and also waives this requirement for active duty military personnel who move due to a military order.

This truly is wonderful news for the housing market and an exciting opportunity for potential homebuyers. Now is the time to take advantage of this opportunity. This is said to be the last tax credit that the government will offer, so first time homebuyers and move-up buyers should do their best to take complete advantage of it.

To find out if you are eligible for any of the new or extended credits please contact one of our fine REALTORS®. To search for a Coldwell Banker agent in your community, visit http://www.ocviewline.com.