With the success of the $8000 tax credit for first time home buyers in 2009 - Congress has recently decided to add an additional incentive for people who are not first time home buyers - but move up home buyers.
Move up home buyers are those people who currently own a home, but go out and buy a different home (usually a bigger or nicer one) to live in as their primary residence. For much of the 1990's and early 2000's, the move up home buyer was the backbone of the housing market.
According to UPI, the move up home buyer tax credit may not spur as many new sales as the first time home buyer credit:
"On a percentage basis, the effect of the tax credit would be much smaller for current homeowners," observed Thomas Popik, research director for Campbell Surveys. "We estimate that the first-time homebuyer tax credit will result in a 10 percent increase in home sales from March through November of 2009. We'd expect the effect of the proposed tax credit for current homeowners to be about half as large--from December until the tax credit expiration in the spring of next year, it might be five percent of three million transactions, or about 150,000 incremental home sales. Incremental sales to first-time homebuyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension."Here are the highlights to the 6500 tax credit for move up buyers: