Tax Credit for HOMEOWNERS--Could it be?

This is what I've been mentioning during my real estate discussions with friends. The middle value real estate market has come to a hault due to depreciating house values (and decreased consumer confidence in housing, employment and the economy in general). A homeowner who is lucky enough to sell their current home without bringing money to the table, doesn't want to do so since they will have $0.00 to put toward another property. Renting is an option, but not always a desireable one. Now, there is a new proposal for a tax credit for home owners... Here's the initial jist of it: current or previous homeowners who have owned a home for 5 consecutive years out of the past 8 years may receive a tax credit of $6500 for the purchase of a new home. The income cap for this program is at $125,000 for single income family, $225,000 for a dual income family. I am curious to see how this pans out!! I'll keep you posted!

Carmelle Shea