For several months in 2009, it seemed that the U.S. government was only interested in helping first-time homebuyers get a great deal on a home.  Even though the Federal New Homebuyers Tax Credit was a boon to realtors and homebuyers across the nation, and helped to spike home sales in Colorado Springs, it was hardly an incentive for people looking to trade up.

Thankfully, the federal government has gotten the message loud and clear.  In an attempt to sustain the momentum created for new homebuyers, the credit has been extended to include existing home buyers as well.  This new stimulus, intended to boost the middle-tier of residential housing, is expected to help homeowners trade up to bigger and better homes and ultimately revive a sluggish housing market.

Why all the emphasis on encouraging people to buy homes?  Well, besides being an easy way to improve home values, whenever the housing market experiences growth it is good for the overall economy. People tend to spend money on furniture, home improvements, landscaping and appliances, which is why there is so much national support for the extension of the credit.

How can you use the new tax credit to trade up to a house in Colorado Springs?

First, you need to buy a home between November 7, 2009 and April 30, 2010, and you must have owned the home you are vacating (and used it as your primary residence) for at least five consecutive years out of the past eight.  In order to qualify for the full credit, individuals must earn less than $125,000 and couples’ income cannot exceed $225,000. Also, the home being purchased must be used as a primary residence, and the sale price cannot exceed $800,000.

Why not jump in and support the economic recovery by trading up to a better home at a great price?  For current homeowners, the credit can be up to $6,500, but time is limited.  There are still over four months to take advantage of this offer on a new home in Colorado Springs, but remember, you will need to make settlement by April 30, 2010.  Here’s to improving home sales in Colorado Springs!