Home buyer tax credit expires soon - KTIV News 4 Sioux City IA: News, Weather and Sports

Home buyer tax credit expires soon

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SIOUX CITY, Iowa (KTIV) -- Home sales are on the rise in Siouxland and around the Midwest. 

"The last month or so sales have been picking up," says Sue Raby-Struthers of RE/MAX of Siouxland.

She says a tough winter has motivated some home buyers, but the biggest reason sales are up is the incentive from the government. 

"A lot of it in the lower price range home is because of the first time buyers tax stimulus credit that's available," Raby-Struthers said.

For those that haven't owned a home for three years or for first time home buyers, the savings can make a real difference. 

Raby-Struthers says, "It's 10-percent of the purchase price up to eight-thousand dollars and its a tax credit that they can receive when they file their taxes.  It comes in the form of a refund." 

First time home buyers like Zach Gaskell and Beth Vogt of Sioux City are getting married soon and are excited about making the move out of their apartment.

Vogt says, "You know we're looking for some thing that would go up to probably the $80,000 price range. Nothing huge, something that we could easily have, start a family in."

And Vogt agrees that the tax credit is the main reason they decided to take the plunge into home ownership and get out of their apartment.

Vogt says, "Initially I would say yeah that would be one of our first things we looked at was the fact that we could get that money back."

And she says its money they can spend to buy furniture or do any needed updates.

Vogt says, "There are lot of improvements that can be done with that money, it does have a big impact.  I know a lot of buyers we talked to, other first time home buyers, that are really excited to be able to put that money back into their homes."

If you're a first time home buyer you need to hurry because the tax credit is running out. You have to purchase a home and have a signed contract by April 30th and close by June 30th.  And at this time there's no indication the tax credit will be extended again. There's also a repeat buyer tax credit.  It's for those who have lived in their own home for five consecutive years out of the last eight.  The credit is 10% up to $6,500.

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