BluefoxToday blog : Home buyer tax credit could expand to everybody

Home buyer tax credit could expand to everybody

Tentative discussions are already underway on it, although not yet where it really counts. Which is Washington. The Democratic Leadership Council has brought up the idea and it seems to be getting some traction. But as of right now, it's still in its infancy. No legislation has been introduced.

The first-time buyer tax credit of $8,000 has been fairly successful, boosting demand for the sagging real estate market. This new idea would then make every potential buyer eligible, a move that would give the still sluggish demand side another jolt forward. That's where the big problem right now is, as strict mortgage requirements continue to stifle many would-be buyers. Prices are very affordable in many areas, like Las Vegas and across much of California, and home loan rates low, but when the approvals just don't materialize it's tough to move inventory.

As it is, the new plan recommended by the DLC would only be good for this year. If so, it would need to be pushed through congress pretty quick to have any effect. The way things stand right now this housing and mortgage mess will easily go on deep into next year and beyond, so if this kind of program is introduced it ought to run at least a year, if not longer.

The cost at the moment is figured to be $11.4 billion. That's small change compared to all the billions the taxpayer has thus far donated to Wall Street, with very limited results. This would likely give the real estate market a stronger benefit. 

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 8 commentsEsko Kiuru • May 23 2009 01:27PM

Comments

Esco

It will be interesting to see where this really all pans out.

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) almost 11 years ago

Esko the previous Administration had proposed a $15,000 Tax Credit (not gift) to everyone, before the Demacrats killed the idea.  Let's see what form it now takes since they will be able to take the credit for it.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 11 years ago

I think taking more money from tax payers who would spend it in the local economy or worse raising the deficit for our children's children is not the best use of the tax payers money.

Posted by George & Arlene Paukert (Road to Wealth, Inc.) almost 11 years ago

Esko: Keep us posted. I read this morning in the paper that a third wave of foreclosures is just starting to hit. These are the people in prime mortgages who are recently unemployed. And the hits just keep on coming! It seems like every time someone thinks we've tured the corner, there's something else. I personally don't see recovery until 2010 at the earliest even though our business is decent. Take care.

Posted by Paul McFadden, Pest Control, Seattle, WA. (Paratex) over 10 years ago

Tom,

The preliminary discussions are underway.

Posted by Esko Kiuru over 10 years ago

George,

Washington likes to play games.

Posted by Esko Kiuru over 10 years ago

George,

You make a good point there.

 

Posted by Esko Kiuru over 10 years ago

Paul,

When prime mortgages start defaulting, we do have a way to go before a solid recovery can start.

Posted by Esko Kiuru over 10 years ago

Participate