Agents hope new, improved program boosts home sales in parish

Home sales in St. Charles Parish should continue to rise after President Barack Obama signed legislation extending a popular tax credit that’s available to some homebuyers.

The first-time homebuyer tax credit was introduced in March of 2009 and offered up to $8,000 to those purchasing their first home. The program, which was set to expire in November but has been extended until June 2010, has been credited by some with the upward trend in the real estate market.

The new program will not only continue that credit, but will also offer up to $6,500 to those who have lived in their current residence at least five years and are interested in purchasing a new home. Local real estate agents say that this change should provide the boost they are looking for.

“At first the tax credit was confusing to first-time homebuyers since they do not understand the process to begin with,” April Freese-Templet, of Coldwell Banker TEC Realtors, said. “It is up to the real estate agents to help educate first-time homebuyers on the benefits to them. Now that repeat buyers are going to benefit as well, the tax credit should help spur more home sales.”

Templet said the reason that should occur is because those buying their second home already know the ins-and-outs of the process.

“They should have included second-time homebuyers when the program first started, because I think that really would have helped sales,” she said.

Nita Naquin, with ERA Stirling Properties, said that residents in the parish showed a lot of interest in the homebuyer credit when it first began.

“And a lot of those people did follow through by purchasing a home, especially in the summer months,” she said.

She expects that interest to increase since the program is now available for those looking to make a second home purchase.

“More people are eligible and we’re hoping that the market will stay strong while the program lasts,” she said.

The IRS says some 1.4 million people applied for the first- time homebuyers credit through August, helping enliven the moribund housing market. Along with continuing the tax credits for homebuyers, the income ceiling for eligible individuals has also increased to $125,000. For couples, the limit is $225,000.

Homes must cost less than $800,000 to qualify.

 

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