The President signed into law the Unemployment Compensation Extension Act (H.R. 3548) which included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The new bill includes a tax incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. First time homebuyers - or anyone who hasn't owned a home in the last three years - would still get a credit of up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.

The tax credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. All provisions of the Homebuyer Tax Credit become effective today Nov. 6, 2009 for both first-time buyers and current homeowners -- not Dec. 1.

This truly is exciting news for our industry and now more than ever we need to take advantage of this opportunity. This is said to be the last housing tax credit that the government will offer so first time home buyers and move-up buyers should take advantage of it. Continued recovery in the housing market is key to returning stability to the overall economy, and this extension and expansion of the tax credit will create a strong foundation for future growth of housing sales, making a measurable difference in our economy.