Trunk Bay

Trunk Bay on St. John, U.S. Virgin Islands

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the National Association of Realtors®. May’s increase was the first back-to-back monthly gain since September 2005.

“There has been some concern that because language in the stimulus legislation states that those eligible for the credit include the 50 states and the District of Colombia that the territories are not eligible,” Delegate Donna M. Christensen said in a statement from her office. “However, for the Virgin Islands and Guam, the mirror tax makes changes to the U.S. code applicable to our territories.”

If you already purchased a home you can still use the deduction, so long as the purchase was after Jan. 1. If you are considering buying a home, the tax credit is another factor to consider as you budget and determine what you can afford.

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