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With the emphasis on the government stimulus package being the forefront in the news, one cannot help but to figure out how this will effect the housing market here in the Capital District.

Doing the math: low interest rates, plenty of homes on the market, low unemployment here, and now the possibility of Uncle Sam allowing either a $7,500 or $15,000 tax CREDIT to buyers- WOW- I see the market heating up!

The current version passed by the House and in effect now is a first timer credit ( have not owned a home in 3 years) and max. amount is 10% of the purchase price or $7,500. This also  has income limitations of $75,000 for single and $150,000 for married couple, and is repayable over 15 years in the amount of $500.00/year. It is also refundable meaning if your federal tax owed is , for example, $5,000, you receive a check from the government for the difference of $2,500. This is set to expire 7/1/09.

The new version proposed by the Senate allows a maximum credit of $15,000, is available to everyone as long as its a primary residence, does not have to be repaid unless you sell the home in 2 years and is NOT refundable. The credit amount received will be no more than your federal tax owed. So, eventhough there is a higher credit, the max. received is based on taxes owed.

So, which one is better for you? Lets see how the Senate and House merge their ideas and once the dust settles- I will post the details. In any case, it will help the market and I am here to help you!