KTUU.com | Alaska's news and information source | Realtors, builders hail extension of home buyer tax credit

Realtors, builders hail extension of home buyer tax credit

by Leyla Santiago
Saturday, November 7, 2009

ANCHORAGE, Alaska -- President Barack Obama signed off on a bill this week to extend the first-time home buyer tax credit -- and this time more people benefit.

"That would be a great bonus," said Lindsey Sawacki, who is looking to buy a four-plex in Anchorage. "I mean, why not?

"It just makes it more fun," said Linda Hopps, Sawacki’s realtor.

Officials say more than a million buyers this year took up the government's offer: an $8,000 credit for renters to buy a primary residence worth $800,000 or less.

"If anybody needs a new home, now's the time to be out there," Hopps said. "It's just a great, great time for home buyers; the interest rates are really low."

That offer was set to expire in November, but is now extended to sales contracts entered through next April and closed next June. Eligible income limits have been raised to $150,000 for individuals and $225,000 for married couples.

"If they've lived in their homes for the past five years consecutively, they now can also qualify for a $6,500 tax credit," Hopps said.

"It just boosts buyer confidence and results in more sales, which makes more work," said Andre Spinelli with the Anchorage Home Builders Association.

The tax credit is expected to affect two-thirds of buyers and sellers. For Anchorage builders, the decision buys more time to make deals.

"We've actually had a lot of calls with people asking if this building would be done by the Nov. 1 deadline," Spinelli said, standing by a home his company is building. "And we had to tell them no, so we'll probably see some sales as a result of the extension."

Contact Leyla Santiago at lsantiago@ktuu.com