The $8,000 credit for first-time homebuyers has been retained.  The law also creates a new $6,500 credit for existing property owners looking to sell their home and buy another during the same period of time.  The plan allows homebuyers who have lived in their residence at least five of the last eight years to receive a $6,500 credit.  The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible.

Income Limits

Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. That is up from the current $75,000 limit for individuals and $150,000 for couples. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

Goldman Sachs Group Inc. said in a research note yesterday that the credit probably spurred 200,000 home sales that otherwise wouldn’t have occurred.

“This is probably the last extension,” said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

The bill, approved unanimously by the Senate late Wednesday, extends unemployment benefits for up to 20 weeks.

It also keeps a first-time home buyer tax credit alive until next spring, and expands it to include some people who already own a house.

The vote was 403 to 12.

The bill extends jobless benefits in all states for 14 weeks, and for up to 20 weeks in states where the unemployment rate is above 8.5%.

Obama may sign the bill as early as Friday.

The U.S. unemployment rate is at a 26-year high of 9.8%, and the White House is warning that job losses will continue even as the economy recovers. The latest U.S. jobs figures are due Friday morning, and economists surveyed by MarketWatch estimate that the country lost 150,000 jobs in October. See Economic Calendar.

An $8,000 credit for first-time home buyers now set to expire this month is extended through April 30 under the bill.

The bill also allows people who have lived in a home for at least five years to claim a $6,500 credit if they purchase a new home.

House lawmakers voted after the Labor Department reported Thursday morning that the number of people filing initial claims for state jobless benefits dropped by 20,000 to a seasonally adjusted 512,000 in the latest week. It was the first decline in two weeks and the fewest initial claims since early January. See full story.

But the jobless claims figures don’t point toward quick job-creation, analysts say.

“If the pace of decline from the peak is maintained, we are still some five months away from claims reaching the level that will signal net job growth,” wrote RDQ Economics economists.

The bill also includes a tax provision allowing small businesses to write off losses they incurred during the recessio

By Robert Schroeder, MarketWatch

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob