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.