BluefoxToday blog : Homebuyer tax credit may be expanded

Homebuyer tax credit may be expanded

Las Vegas housing market alone would be a big beneficiary if it did happen. Southern Nevada has already seen solid gains this year in sales thanks in large part to the first-time buyer tax credit of $8,000. This incentive is set to come to an end December 1.

NAR, or National Association of Realtors, and the mortgage industry are currently working on Congress to keep it going well into 2010. It has such a good track record, so why not. They have two other worthwhile ideas in mind as well.

The tax credit ceiling ought to be hiked to $15,000 is one of them. If it were to go that high, it would really give the real estate market some kick. Of course this would cost the U.S. Treasury another chunk of money, so there could be some resistance to it. But on the other hand, it might be better spent this way than hand anything more to banks that have largely been using bailout cash for just about everything else but help the housing industry. In other words, make mortgage funding more available to borrowers.

The other is to allow every homebuyer under this tax credit umbrella. Not just first-time buyers. There is no doubt that this would give the housing market another serious injection of valuable medication.

The real estate market is a key element in the entire economy that is still wobbling along. In light of that, it's predictable that some sort of a stimulus effort will be enacted before too long and hopefully it includes some good news for the housing sector.

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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 6 commentsEsko Kiuru • July 24 2009 11:43PM

Comments

We need to extend or expand the first time homebuyer incentives, for sure.  It is the best way to deplete much of our excess inventory in a short period of time.  That way, maybe our markets can return to "normal".

Posted by Tom Boos, Providing the very best of service to Sellers and (Sine & Monaghan Realtors, Real Living) about 9 years ago

Esko:  From your lips (or keys) to God's ears (or Legislators).   There are so many things we could do to stimulate this market, this, of course being one of them. 

We should all call our elected officials and let them know we are in support of this.

Your post is now featured on the Optimist Group.

 

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) about 9 years ago

Esko my preference would be to expand the existing tax credit to allow every homebuyer to qualify for it and not just "First Time Homebuyers". 

I am not for increasing it to $15,000, we have already created enough of a tax burden.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 9 years ago

Tom,

Bringing the inventory down as soon as possible is crucial.

Posted by Esko Kiuru about 9 years ago

Mirela,

Thanks for the feature. Hopefully this plan will get passed in some progressive form.

Posted by Esko Kiuru about 9 years ago

George,

To allow everyone on this program would be a big help. 

Posted by Esko Kiuru about 9 years ago

Participate