Helping the Move-up Market
The $8,000 tax credit for first-time home Buyers worked so well that the government has extended it to move-up Buyers, too (albeit in slightly less generous form).
Beginning Dec. 1, eligible Buyers who’ve occupied their existing home for 5 out of the last 8 years qualify for a $6,500 tax credit of their own.
The idea is to leverage strength in the lower rungs of the housing market to help more expensive housing.
If tax incentives actually buoy the move-up market, guess which homes, in which market segment, are likely to be targeted next?
Hint: it takes jumbo mortgages to buy them.