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Home Buyers Could See Increase In Tax Credit

Congress Weighs Boosting, Expanding Credit

POSTED: 5:28 pm EDT June 22, 2009
UPDATED: 5:49 pm EDT June 22, 2009

Whether they're brand new or older, homes for sale are sitting on the housing market longer than they did last year, a trend experts predict will reverse itself with another nudge from the nation's capital.

"This would be a very, very big deal," said Realtors Association of Pittsburgh President Paul Culley.

Culley, along with many of his counterparts nationwide, has been lobbying lawmakers to boost home-buying tax incentives.

For 2009, Congress is giving first-time home buyers $8,000, but is considering a bill to increase that tax credit to $15,000.

"Yeah, that's a good idea, but you have to pay for it. That's the problem," said Rep. Jason Altmire, D-District 4.

According to RealSTATs, housing sales in the Pittsburgh region through May are down nearly 25 percent from 2008, with the average home in Allegheny County remaining on the market 110 days.

"If we can pull up the real estate, we will definitely pull us out of the recession," said Culley.

Congress is also considering extending the $8,000 credit through next June and offering it to all home buyers instead of just first-timers.

Altmire said the latter may be less likely.

"I think there's a good chance we'll see it extended. It expires in December of 2009. It has worked very well. We have to see where the economy is when we get to December," said Altmire.

Pennsylvania residents are able to use $6,000 of the $8,000 tax credit as part of their down payment and the state is willing to advance the money.

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