The new home-buyers tax credit has been extended through April 30, 2010. Along with it, a new credit for people who already own a home. The maximum tax credit for a new buyer is $8,000. For an existing homeowner, the maximum is $6,500.
The $6,500 tax credit for existing buyers is new. Owners have to have lived in the house -- worth less than $800,000 -- for the past five years and a couple cannot make more than $225,000.
An important note -- there's a stipulation to the tax credit. You have to live in your new house for three years, or you have to pay back that money.
A three bedroom, two-and-a-half bath home in the Milwood neighborhood of Austin has been on the market for less than two months.
"This home's got more upgrades that you would typically find in Millwood," said Bob Ream, seller.
Still, it's priced in the range for many first time homebuyers, which is good news because new buyers now have a second shot at the $8,000 tax credit.
Looking forward having this extended tax credit through the first quarter of 2010 will be a much needed boost so to speak," said Brian Talley, Regent Property Group.
Talley crunched the numbers and found the hottest-selling neighborhoods in Austin so far this year.
Circle C in South Austin tops the list for the most number of homes sold in its neighborhood, at 238. Millwood in Northwest Austin is second, with 205. Steiner Ranch, Avery Ranch and Cherry Creek neighborhoods round out the top five.
Circle C certainly has more expensive homes, but it also has more listings percentage-wise than the lower-priced neighborhoods like Millwood.
"As far as inventory availability, we're talking 3 percent under the $250,000 price range -- or three months worth of inventory," said Talley. That means if buyers were to continue at current trends, all those homes would likely be sold within three months.
"I know one of the ones we were looking at just the other day went into pending, so lucky for those people," said Tod Meinke.
Meinke is looking for a second property. Even though he's got more flexibility, he still hasn't found the right place.
As for Ream's house in Millwood, he's expecting it will sell soon.
"Actually, I've got about three buyers that I think are really interested," he said.
It's interest he hopes will lead to an offer on the home he's lived in for 17 years.
