The Housing Market just got another shot in the arm, when Friday morning, President Obama signed the bill extending the $8000 federal tax credit for new home owners, and expanding the credit for current homeowners.

The clock was ticking as the first-time homebuyer tax credit was due to expire at midnight on November 30th – but an expansion and extension of the tax credit, spearheaded by Senators Chris Dodd and Johnny Isakson, was approved by the U.S. House of Representatives with an overwhelming 403-12 margin.

The senators have hammered out a compromise that allows existing homeowners who have lived in a home for more than five years to participate. The existing program only covers first-time buyers. The extension will run from December 1, 2009 to April 30, 2010, but those with contracts as of the expiration date will still qualify as long as they close their deals within 60 days.

According to Dodd’s office, the extended credit will be available to more than 70 percent of existing homeowners.

Predictions by analysts and economic experts are that we should see some turnaround in jobs and home prices next year, and while the employment and housing markets are still in recovery, the tax credit extends a little bit of an economic bridge to recovery. Prolonging the tax credit is not only being welcomed by buyers and sellers, but also industry leaders, financial institutions and home builders, all of whom benefit from economic strength in the real estate market.

“We also all know people out there who wanted to take advantage of the original tax credit, but we’re stymied by the deadline,” Senator Isakson has said, “This extension is a once in a lifetime opportunity, and if you want to take advantage of it, now is the time.”

James Tibbetts, Associate Broker, Windermere 206-932-2550