The $8,000 tax credit for first time home buyers has been extended to contracts that are signed by April 30th 2010 and closed by June 30th 2010. The income limits for those eligible for the credit has also increased from $75,000 for individuals and $150,000 for married couples to $125,000 for individuals and $225,000 for married couples. A first time home buyer here is defined as a person who has not owned a home in the past three years.

This is therefore an opportunity for opening up of the market for higher priced home properties as currently the market is seeing more movement in the lower priced home properties. This should also have the effect of preponing the property transaction foreseen in second half of 2010 to the first half of 2010.

Additionally move up or repeat home buyers will now receive a tax credit of $6,500 if they have lived in their primary residence property for 5 years. This will also have the effect of further opening up the market for properties. Lets see what happens thanks to Mr. Obama.

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