The Senate has approved a new tax credit for home buyers that should be a big help to jump-start the housing market. As part of the Economic Stimulus Bill, home buyers of a primary residence will receive a tax credit of $15,000 or 10 percent of the cost of the home. This is a huge incentive for home buyers that should be an additional plus along with low interest rates and affordable home prices. This bill does have an up hill battle as the House of Representatives has yet to pass a similar package. This may take a few weeks to pass and anything can change on the final bill.
This new tax credit will replace the old $7500 credit that was available for new Home Buyers. This is a positive move forward for the Senate and one that should show Home Buyers that now is the time to make that home purchase. Buyers have still been reluctant to make the move. With this new credit it is difficult to understand why buyers are not jumping for joy to buy homes. Along with the credit, interest rates are at historic lows. This alone should have buyers running to find a home to buy.