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HIGH POINT, Nov 07, 2009 (High Point Enterprise - McClatchy-Tribune Information Services via COMTEX) -- Local real estate agents breathed a long sigh of relief when the popular First-Time Home Buyer's Tax Credit was extended by the House on Thursday night with added benefits for previous homeowners.

The House approved an extension before the Nov. 30 deadline arrived for the tax credit, which originally offered up to $8,000 toward the purchase of a home for first-time buyers. Now extended to April 30, the new credit also offers up to $6,500 to previous buyers who have been in their current home for five of the past eight years.

"This really will keep the momentum going and open the tax credit up to another segment of the market," said Jeannene Poarch, president of the High Point Regional Association of Realtors. "That's one of the things we lobbied for."

Poarch and other members of the HPRAR met with state leaders, including Rep. Howard Coble, R-6th, and Rep. Mel Watt, D-12th, to encourage support for the tax credit's extension after they discovered that it accounted for nearly 42 percent of sales for HPRAR's members in the first quarter. They also asked that the tax credit be extended beyond first-time buyers so it could further stimulate the housing market.

"We asked our other real estate agents to get involved, and we sent out a plea to the public to contact their representatives as well," she said. "(The tax credit) is going to stimulate the economy. Now, it's going to help current homeowners who want a change."

Carol Ferrell, operator of Carol Ferrell & Associates, said the tax credit had a significant effect on her sales for the last seven months. She said the housing market would be on a much slower path to recovery if the tax credit hadn't been extended.

"This will have an immediate effect, especially coming into fall and winter when things slow up," Ferrell said. "As long as (mortgage) interest rates stay low and the weather stays good, the market will continue to move along. At least it's better than last year."

phaynes@hpe.com -- 888-3617

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The First-Time Home Buyer's Tax Credit has been extended to April 30, 2010. It continues to offer first-time homebuyers up to $8,000 toward the purchase of a new home.

The credit has been extended to previous homeowners, who can receive up to $6,500 toward a new home if they have lived in their previous home for five of the past eight years.

Qualifications for the tax credit include an income cap of $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

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Pam Haynes

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