Real Estate: Tax credits and inventory

On Nov. 6, President Obama signed an extension of the $8,000 First-time Homebuyer Tax Credit and further expanded the program to include a $6,500 credit for some people who aren't first-time buyers. The previous tax credit (for first-time buyers only) had been in effect from Jan. 1, 2009, and was set to expire on Nov. 30. This program clearly motivated many buyers to purchase a home, thus inspiring the federal government to continue the program and expand the number of potential buyers who can qualify for the credit. Below are some details about this recently passed legislation.