There has been much talk about extending the First Time Home Buyer Tax Credit, which is set to expire December 1, 2009. I personally have been involved in a transaction where the buyers where utilizing this tool and it was definitely the motivation (or at least one of the motivators) for this buyer to purchase a home. To qualify as a "first time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.  This tax credit is equal to 10% of the purchase price (up to $8000) as long as your income is less than $75,000 for single buyers and married couples up to $150,000. If you make more than that, the credit decreases. If you want more details, please email me at kristi@buckleyrealestate.com or call me at 206-842-4099.

My hope is that this will be extended because it is a good way to get renters into buyers and get the housing market moving.  There seems to be a lot of activity right now in the below $500,000 market on Bainbridge Island and it is my feeling that a lot of buyers are utilizing this tool. I also hope that not only will they extend it, they will further open it up to buyers who currently own homes. The question then becomes, how will this be paid for? Any thoughts on this?