Tax credit extension thrills E.V. homebuilders

Area homebuilders received welcome news Wednesday that the federal first-time homebuyer tax credit is being not only extended but expanded to include buyers who already own homes. President Barack Obama is expected to sign into law a bill that extends the $8,000, first-time homebuyer tax credit set to expire Nov. 30. It also creates a tax credit up to $6,500 for buyers who have owned their current homes at least five years. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30. "In our view, that's the kind of government action that needed to occur to continue to stimulate the housing market," said Greg Burger, co-principal of RL Brown Housing Reports. "We believe it will be a positive catalyst in the market moving forward through the end of this year and into next year. Prices are at historical lows ... and this would be some added incentive to go ahead and make the move sooner rather than later."

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