Last winter, before the $8,000 FIRST TIME homebuyer tax credit was finalized there were rumors that it was going to be $15,000 tax credit for ANY homebuyer. Remember when your mom said "if it sounds too good to be true - it is"?? Well, don't hold your breath, and take my other advice I've been giving out (free) for months - " Stay Healthy, Work Hard, Save Your Money".

Where do you people think this money is coming from?  Enough is enough.  This government is breaking this country.  Your granddchildren will be paying this money back.  The government needs to get out of the private sector.  Sometimes you have to go through a little pain in order to heal.  Stop looking for handouts from the government.  A government that is big enough to give you everything is big enough to take everything.

What the government should do is investigate the banks who hold these properties and find out why when a full price offer is made on a house the property still sits for 3 or 4 months then gets forclosed before a sale is made!!!!!!!!

It's crazy how much money the government is printing to try and appease the masses. We should not have Wall Street running Washington which got us in this mess. I worry about my kids futures, the amount of money Washington is throwing around is so large that I cannot comprehend it.

A great idea to extend the date but it would be more likely to pass if that was the only change.

Most of the homes listed in my area are short sales and they take a long time to close.

Please check out Govtrack.us   They let you know how bills get passed and what the status is of a bill. This one unfortunately has been sitting since June and with the "cash for clunkers" it is most likely not going to be extended. It is only at stage 2 of a six step process.

Good chance it won't pass....so either way, I'll be ready for the mad rush! :)

Bring it on!

AND if you do a little investigating yourself at http://www.govtrack.us/congress/bill.xpd?bill=h111-2801 you should also note that a majority of bills introduced to the committe, never make it out of the same. Not to be a Debbie Downer, I'm being a realist. Our economy is improving, gradually, so why would COngress pass a ridiculous offer to EVERYONE? I have my doubts, however I do believe it is possible that within the next 6 months an amended bill or extension may be offered to the First Time Buyers program we are currently experiencing.

So many comments on just what you wrote without seeking to understand more.

I'm not afraid to say it Janet, I think your post was self serving, pre-mature and used to boost your "Rainmaker" status or other personal agenda on AR, in which case, shame on you; its not about you. Try posting something of use or at least offer some valid cited resources with your posts.

I am not holding my breath. But I am wishing on a star. Any stimulus will help us/economy. I have never liked the name they gave this, "first time buyers". It really misled the public, because if you haven't owned a home in 3 years, you qualify. Sales are picking up in my area (Memphis) but we sure could still use a shot in the arm to get people off the fence.

Hi Janet,

I am also in the PHX area and I do believe this will certainly aid us here with the amount of bidding going on for homes...32 bids on a home in PHX last week {home on the market 5 days...my client 5 days too late!)  As well, some of us have been waiting for months on the short sale offers to approve  (4-8 months) and if we have had offers on the table for the past 5 months.If we  get approved past the November 30th dead line, well......it would have all been a waste of time with the first time home buyers who NEED the 8K credit because they borrowed the down from there parents? We would have to cancel the deal based on....no money!

I for one am in favor of anyone being allowed the tax credit  to continue just in case the rumored  "end of September when the banks release there 1.5 million inventory of foreclosures" actually happens, buyers can actually afford  them!

On another note, I too am opposed to the mortgage backed security's that crashed the market in a bad way!  I am also horrified to find that the banks are currently continuing to invest in Wall Street....just madness!

I too have been watching and waiting for this to occur!  Hopefully this will bring those 1st time buyers and temporary apartment residents back into the market.  I had a couple who just moved here and were highly disappointed when their lender told them they'd have to wait a year to be qualified - thus removing their ability to be eligible for the $8000. Now hopefully they'll still have a chance - in the $150,000-$200,000 range, that's a lot of money!

However, we're getting fence sitters back because the rents have fallen so greatly that young families can rent a very nice home for way less - the general deductions for these folks are not that meaningful.  If you have a creative response for these folks, I'd love to hear it!

I think it is more government interference in the free markets. I know that could open a can of worms so I will leave it at 1. Reduce taxes 2. Reduce the size and scope of the current government 3. Incentivize small business

Great post to get all of us thinking. We need to be marketing to all people, not just first time buyers. It's dropping the income caps that will help move high-end properties. The pipeline at the lower end of the market is mostly moving the foreclosure/bank owned homes. There's no move-up seller in those houses. Un-plugging the pipleline is what will get this market moving again.

As a Realtor I understand why Realtors support the tax credit.  As a citizen of the United States of America and a conservative I reject this extension of the "Economic Destruction Act of 2009" as a clear step into socialism and appeasment of the hordes of mindless lemmings with overdevelped senses of entitlement.

With all do respect (don't you love when comments start out that way) I appreciate your sentiments on potential benefits from a revision of the current policy but when and wherever the government sticks its money bleeding nose into the markets there are a whole host of unintended consequences that far out way any perceived benefit or solution to any given problem. While my ability to provide for what is left of my family comes from my chosen profession of Real Estate it is abhorrent to me to except as an American any government hand out, goodie, incentive, or any of the such. It is all gimmickry and slight of hand. What happen to the days of you rise and fall on your decisions to be financially sound and make the choice of either saving and spending on the most basic rules of budgeting in need versus want. Are we ready to give away our soverign status as citizens so easily! Sorry, I know I digress. Bad idea, bad timing, the buyers who need to be looking for homes are ones who had decided to make the sacrifice to do so. All this does is keep prices artificially higher then otherwise should be as the banks are doing in holding on to inventory that should be on the market in free market principles we all should agree on. My apologies for offending anyone! I pray for God's blessings for each of you and that you should look towards the heavens for wisdom and council and not those who seek you destruction.

It would be ideal if the public was not again on the hook for another rebate program, HOWEVER since the door has already been opened to what appears to be creeping socialism in formerly seldom-trodden aspects of our American life, why not give this incentive to all buyers. This may indeed get the sluggishness out of the real estate market.

Doesn't anyone remember that this is paid for by TAXES??

The new bill sounds great but someday we are going to have to pay for it. There is no free lunch in the long run.

Just should have gave the whole country (homeowners) an automatic  4% refi and then the market would have been flooded with money, bills paid, money saved.

Janet,

I agree with you that buyers such as your daughter should be given the same tax incentive as those individuals making less than 75k.  If we need to encourage consumer confidence in the housing market in depressed or declining markets, tax incentives may be the tool (esp. if lending and or financing is stricter and credit less available...).  We can see that people have been motivated to invest in real estate either with tax incentives (mortgage interest and other deductions, depreciation, credits). Typically, when people buy real estate, we also see them buy things to fix them up (services, home improvement materials) and stuff to put in them (furniture, appliances).  We just need to get those markets moving.

Ronda

Wouldn't creating middle to high paying jobs in communities across the nation and exportable products be a better way to stimulate the economy? I know that if someone buys a home they may need to buy a rake which stimulates the economy but... giving people the opportunity to work (near their home preferably) and advance at their work be a better way than government handouts in a county that is already Trillions of dollars in debt. it's time to make some better products that people all over the world will buy.

I think there should be a cap on income for this hand out program because I have a problem chipping in on helping someone who makes over $100,000 a year buy a home. If you make $100K a year and can't afford to buy a home that's a personal bugiting problem.

The real estate market is already fantastic in my area. Low prices. Low interest rates. Multiple offers on every decent home. And, very low inventory. Home buyers don't need a hand out in this market. I say stop the tax credit and lets see what happens. If inventory goes through the roof and there are no buyers to be found, then we can start it up again.

While the income restrictions would probably help increase home sales.  However if you make it open to others than just home time buyers you do not eliminate the gluttony of homes on the market.  First time home buyers result in a reduction of homes on the market.  Other home buyers will not result in a net reduction of homes of the market, which is necessary to stabilize home prices.

As a small business owner I would like to ask all those that think any of these government bailouts-stimulus packages-tax credits etc...are a good thing, just send your tax returns in blank in January. Add a post-it telling your dear old uncle to take whatever he needs. I for one will continue to hire the best tax man I can find to keep all that I work for. As independent contractors, how can you praise this sort of action? Your gains will be short lived as you are pushing for programs that insure the end of our very existence. Please look past this November and at the bigger and long term pictures.

WoW! You certainly woke up a lot of agents! I think we all kind of suspected this would be introduced. This $8,000 credit certainly helped. Hopefully in the next few months the banks will feel more comfortable with lending. This market transition has been trying to say the least. My buyers are still concerned about geting their credit way up so they have no difficulties securing a loan which means they were putting their buying off from 3 to 6 months. With this new proposal and being able to get the$8,000 ,new home buyer or not, will really help. There should be a lot a people clicking those ruby red heels. Great blog,

I think its a great move! Now I would like them to change the refi parameters for those of us who are making our payments on time every month and have cut off our equity lines, because they have changed it from 100% to 80% loan to value. NOT FAIR! My home has remained steady in price from when I got my equity line.

I know I got off the topic a little but I just thought I would add my 2 cents for what its worth.

I'm confused.  Are you talking about the $8000 tax credit bill or the HOPE bill?  If you are talking about the tax credit bill (presumably named HOME bill), I get it.  If you are talking about the HOPE bill, then I ask why would any clear thinking person endorse it?  The restrictions are tremendous and you have to wait 5 years to sell without a penalty.  Does the new HOME bill extend the tax credit or combine it with the HOPE bill and all its deficiencies?  Does anyone have the details?

   I am shocked, truly shocked when I read my fellow citizens advocating their position on this current and potentially revised economic policy from the perspective of their own income potential and or income sustainability. I fear for the future of our representative republic ( not democracy! ). I do not believe that is putting to harsh a qualifier on my statement either. You are so quick to spend other peoples money so you can sustain or increase your income, excuse me! Who are you and who made you king! We should all be on our knees thanking the Lord above to live in a country where we are so free as we are and to think we have a right to be so free with other peoples money (which is a travisty!) is beyond any serious persons logic. If this is how you truly feel I challenge you to give me control over your finances for one month and I will do everything I need to off of your hard work to ensure my financial security knowing, yes knowing when I do it it will bankrupt you. I am sorry for preaching here but if truth is to be denied then all of this is an exercise in futility!

Great to get first-timers into the market, but if what they're doing is buying short sales and bank-owned, that doesn't move the market anywhere, since those Sellers cannot move up.  Sure, it clears some low end inventory and keeps me in red wine, but it won't get the market moving.

Janet,

  The next thing that will happen is that they add an  excise tax on the Sale of the home to help  pay for this broad  and expanding program.   The money has to come from somewhere( and it's not in the budget) .so  the Seller  will have to pay.  Give to Buyer, take away from Seller. ?

I think this new bill written by a NC Republican is just a giveaway to his biggest campaign donor----The National Association of Realtors. I am a Realtor too but I am also a taxpayer. Sure this credit helps our business but Realtors stop looking at only what is good for you and start considering what is good for America as a whole. We taxpayers are 1.6 trillion in debt just this year and you give out more government handouts. If you argue that stimulus is needed then at least make it req'd to be paid back interest free like the first $7500 tax credit. At least that way we would get our money back. The government is again messing with the free market to rig it to get the results it wants. This is America and like drug addicts most americans are addicted but instead of being heroin it you all are addicted to social programs and government handouts that benefit you. Would you all support $8000 given to all renters? That would stimulate the economy too! No, of course not because you all are only looking at what is good for yourself--more sales. Take a look at the big picture and stop government handouts.

The law of unintendend consequences....if this bill is passed and applies to all homebuyers buying a principal residence you will see a flood of homeowners buying some cheaper foreclosure getting the $8000 and just letting their current home go back to the bank. Is this what we are paying $8000 to stimulate? If it has to be paid back over time then you will still see the stimulating effects without the bill that will eventually come due to all us taxpayers.

With just three months left before the first-time homebuyer tax credit  joins Cash for Clunkers in the ash bin of stimulus programs, will Congress extend the program another year quickly enough to prevent a disruption in the marketplace ?

Unfortunately, it's virtually certain that buyers will run out of time to buy a home long before Congress gets around to it, since it takes twelve weeks for the average first-time buyer to find a home and four to six weeks to close.  The tax-writing committees-Finance in the Senate and Ways and Means in the House-have yet to consider the matter.

 Making it more complicated is the "ask"-that's Washington talk for what you really want above all else.  The "ask" in this case is not as clear as it might be.. 

First of all, the two biggest industry groups, the Realtors and home builders, say they want more than an extension.  They also want the credit expanded to include all four to five million homebuyers next year.

 "We say -- if (the credit) is working for first-time homebuyers, then why not for all buyers, with no income limitations? We would like to see the expiration date extended (beyond Nov. 30). Expanding the credit is really the way to stabilize the (housing) market -- by making it available to everybody," NAR's Mary Trupo told columnist Ken Harney recently.

The NAHB also wants net operating loss (NOL) relief legislation that would help all businesses, especially its publicly held members, by eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carry back.

NAR's top lobbyist, Jerry Giovaniello, speaking recently at a meeting in Las Vegas, gave odds of "better than 50-50" of getting Congress to extend tax credit past its December 1 deadline.  As for expanding it, he told the Las Vegas Sun that it that it would cost the U.S. Treasury, and there would likely be demands that the money to make up the difference would come from within the real estate industry.  And that could include eliminating the mortgage industry deduction, he said.

Senate Majority Leader Harry Reid (D-NV) is more optimistic about the extension outlook.  In a conference call with reporters three weeks ago said "Congress has to extend the credit by the end of the year."  He was not so positive about expanding it.  It's worth noting that the Senate loved the tax credit earlier this year and passed the $15,000 version.  The housing industry's greatest hurdles were in the House last February and they may still be there.  The House, however, controls tax policy.

A clog of major, high priority legislation faces Congress with it returns from
August recess:  health-care reform, climate change and energy, financial system regulatory reform and a new Consumer Financial Protection Agency. It could be tought to make the deadline.

Then there is the growing unpopularity of stimulus plans.  The on-again, off-again Cash for Clunkers may leave no lasting mark on the auto industry.  Many leading economists argue the homebuyers' credit is nothing but a temporary prop to housing sales and it too will leave no legacy.  Taxpayers are concerned about costs and what they are getting for their billions and trillions.  A USA Today poll in early August, for example, founding adults evenly split on whether they stimulus package will make the economy better over the long term.

,

 For more, check out Real Estate Economy Watch.

Janet,

It's hard to disagree that extending the tax credit would be a positive situation but I really think it would hurt us, (agents and builders) because of one main reason.  People will always wait until the last minute to take advantage of a deadline.  If the credit is extended then people will wait even longer because they know they can.  If it is extended I would hope they would not report this until the day the credit is to expire.  The last thing we want to do is give prospects another reason to wait and that is exactly what extending the credit would do.

Thanks,

Josh

Janet,

I'm a little East of you in the Yuba- Sutter area and we don't have enough inventory for the Buyers we have now. I welcome the extension, moving the excess inventory will help stabilize our maket, and lt people buy a home that suits them , and not feel rushed to purchase , just to get the credit.

I encourage all of you to contact your elected officials.  If you don't have their e-mail address you can use these;

Congress:  https://writerep.house.gov/writerep/welcome.shtml

Senate: http://www.senate.gov/general/contact_information/senators_cfm.cfm

I'm in agreement to open it up to anyone that buys a house.  Buy a house, get an $8000 tax credit.  Includes investment properties too.

As I read some of these comments I can't believe more Realtors and lenders don't figure this out. We as a country are TRILLIONS of dollars in debt. We can't GIVE AWAY any more money for this so called "soft landing".

Do you think auto sales will have another record setting sales month in Septmeber now that the cash for clunkers program is gone? All that program did was accelerate sales for dealerships and take some perfectly viable cars off the market. The UAW and Sierra Club just upped their campaign contributions!

Let me ask a question? What is a $150,000 home worth WITH and WITHOUT an $8,000 tax credit? In other words, would a buyer in September pay the same for that home in December when the tax credit is gone? Have we just artifically inflated the market AGAIN- the same as we did with "fog the mirror" loans?

The ONLY thing that will get housing stabilized and moving up is when buyers find that magical "value" button- They now feel the house is worth as much or more than the money they are exchanging for it. First time homebuyers have to feel it's a better deal to buy than rent (financially and emotionally).

Government incentives are not a long term answer to a market correction. Let the market correct itself and only then will a true recovery take place.

If you don't believe in these fundamentals then I hope you FULLY support tax credits for people that buy new furniture, appliances, doggie treats and bottled water. Fido appreciates an email to your representative.

Look out.  The surest way to clear out the inventory is for Realtors to stop taking over priced listings.  If unrealistic sellers could not find unrealistic Realtors to list their property then maybe they would drop their price down to where the market actually values their house.  Inventory drops, prices stabilize then rise, buyers get happy, equity returns.  Realtors return to credibility. Government intervention not required.