Washington, DC – December 9, 2009 – (RealEstateRama) — Colorado homebuyers will be able to take advantage of the $8,000 homebuyer tax credit for an additional three months, Congresswoman Betsy Markey announced today.
“Starting today, thousands of Coloradans can continue to benefit from the Recovery Act’s homebuyer tax credit,” said Rep. Markey. “The credit makes purchasing a home more affordable for working families and individuals who are struggling through tough economic times. The credit is already responsible for hundreds of thousands of new home sales throughout our country.”
The $8,000 first-time homebuyer tax credit made available through the American Recovery and Reinvestment Act was initially set to expire today. However, under the fully paid-for Worker, Homeownership and Business Assistance Act passed last month, the credit is extended through April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase. The legislation also provides a $6,500 credit to new purchasers who have lived in their current residence for five years or more, and provides an extra year for members of the Armed Forces to buy a principal residence in the U.S. and still qualify for the credit.
“The stabilization of our housing market is crucial to our overall economic recovery,” added Rep. Markey. “The three-month homebuyer tax credit extension is a big step in restoring the housing industry, and rebuilding and strengthening the American economy.”
The first-time homebuyer tax credit already has a proven record of success in increasing home sales in Colorado and throughout the U.S. In October, the National Association of Realtors (NAR) reported an unprecedented nine consecutive months of increases in the number of signed home sales contracts. Additional NAR research suggests that, to date, as many as 355,000 sales this year can be directly attributed to the availability of the credit.