No. Nevada homebuyers, construction industry could benefit from tax credit extension

The real estate market is getting another dose of help from the federal government with the extension and expansion of the home buyer's tax credit. The president of the Reno-Sparks Association of Realtors says the first months of the rebate led to a lot of movement in low priced homes and now, she hopes the extension for first time buyers will move a large part of northern Nevada's inventory off the market.

"The extension was a pivotal one because we have so many buyers who are tied up in contracts with short sale properties with challenges in getting to close," said association president Kris Layman.

This latest move to help the housing market is also geared toward current homeowners. A $6,500 tax credit is being offered to people who have lived in their home for five consecutive years of the last eight. Experts say that could motivate some people who were on the fence about buying a home to start their house hunting now.

Some real estate experts say sales in another part of the market could pick up as well.

"Where we've seen many transactions at the $200,000 price point, I think we will start to see movement from the $200 to $400 price level," Layman said.

There is also the possibility that the extension of the buyer's credit could jump start construction, Layman said.

"The expansion has given way for our builders to start moving, start getting some foundations going and buyers to go out and look at new construction, something that hasn't been happening," she said.

It seems as though the northern Nevada market is poised to gain from the latest housing tax credit, although Layman said it will be tough because this time of year is traditionally slow for the real estate industry. Qualified buyers now need to be under contract on or before April 30 to qualify to the tax credit.

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