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NAR makes call to action to extend the $8000 home buyer tax credit - good or bad?

The National Association of Realtors issued a call to action today to contact your Senators and Congressmen about extending the deadline on the $8,000 home buyer tax credit. Click the link above and you can see NAR's video on this subject.

capitol building

While I am glad that the tax credit has probably helped stimulate the real estate market and the economy some, I also wonder about the longer-term effects of this so-called "stimulus" money on this nation's deficit and national debt.

I would rather see the money in the hands of the people as opposed to Wall Street fat cats or failing banks though. However I also hear stories on the news and elsewhere of people using the $8,000 to pay for frivolous items. Kind of a windfall shopping spree. I also don't like mortgaging the future of this country by giving free money to people while increasing massive debt that may end up crushing our nation one day (if it hasn't already). Kind of "socialized" real estate buying if you can call it that. Take from my pocket and put it in yours.

I did some quick research in our Mid-Florida Regional MLS system which covers portions of some 14 counties surrounding Orlando and Tampa. Of 55,500 sales since 12/1/2008, some 23,594 (42.5%) sold for all cash. Which means some 31,906 (57.5%) sold for some type of financing terms. I am assuming that most of the cash buyers are investors who won't be getting the tax credit, while most of the financed buyers are owner occupants many of which will be getting the tax credit. I'm not sure exactly what these numbers mean though. However it does show that many people are buying regardless of whether they are getting the $8,000 tax credit. Personally I bought an investment property earlier this year and didn't get a government check out of it.

So what's your take on extending the tax credit? Is that a good thing? Or should the government simply butt out and stop meddling with the economy? I haven't made up my mind, but overall I tend to be against most government programs that involve spending my tax dollars on items that aren't prescribed specifically in the Constitution.

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

407-389-7318 / 1-877-389-7318 www.SDRhouses.com www.WeBuyHousesFlorida.com

We sell foreclosure, short sale, and bank owned REO house home throughout Central Florida, metro Orlando, and the Space Coast. We sell and list Central Florida real estate and Orlando real estate. Free list of foreclosure and short sale houses available. Our firm also provides flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Florida including Orlando, Altamonte Springs, Apopka, Kissimmee, Sanford, Lake Mary, and Deltona.

Posted by Rob Arnold, metro Orlando full service, investor friendly & foreclosure Realtor on 09/15/2009 01:55 PM

Comments (89)

$8000 Home Buyer Tax Credit in the ActiveRain Channel

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Originally posted at: Central Florida & metro Orlando real estate services: NAR makes call to action to extend the $8000 home buyer tax credit - good or bad?

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89 Comments on NAR makes call to action to extend the $8000 home buyer tax credit - good or bad?

SEP

Rob, extending the credit to first time buyers is a good idea. I think they're the ones that aren't gun shy. Personally I wouldn't purchase an investment property right now unless I had the cash or didn't mind sitting on it making mortgage payments for a while. But then again I think NAR is a stupid organization with ideas that aren't exactly consumer friendly. So what do I know?

Rob, I'm kind of on the fence about this myself. I hate to see us all go further in debt BUT the government is probably going to spend the money anyway so why not make it available to buyers?

Rob-I think it will help we Realtors and those who depend on this business make up for the NARs INSANE support of the cap and trade bill! That bill will all but kill the housing market so we need help.

Interesting isnt it, the Feds want to hurt us with the cap and trade and make us dependent on the $8,000 to help the housing market!

So THATS how socialism works.... I feel dirty all of a sudden.

SEP

Rob, It make good sense to me to extend BUT I think we need the current credit to expire first. The only reason I see market improvements is due to the pending deadline. Lets get the current inventory down. Maybe restart at the first quarter of 2010. IF your serious about purchasing which many are they need to move now. In addition, what will the new extension look like, it may change. So lets get the fence sitters off the fence.

I want the $8000.00 tax credit to be extended! I have several buyers that it would benefit. And if the lay people can use it over the Wall stret guru's then let's give it to the first time buyers

I think it is a mixed bag at best, Rob. Selfishly, it helps my industry [whatever THAT looks like] but on a grander scale - is it good for the contry and the longterm beenfit of all? Hmmm... not as clear.

I am promoting it becausea it is a sweet deal for the home buyers and if helps them get off the fence, so be it.

I even did a quick video about it, now on my home page - http://www.OrlandoMortgagePro.com. that is not intended as spam, so forgive me if adding it here is bad form. =0)

Hope your wife and daughters are well!

Chris the Implementer

In addition to helping the real estate market, our retailers and the MANY homeowners, parents, tax payers, etc. who work in retail are crying out for a little frivolous spending. Consumer spending is at an all time low. This contributes to even greater job loss, which means even less consumer spending- and fewer people in the market to buy homes. And, correct me if I am wrong, but I thought this was more of a tax-free loan? Who, in their right mind, would oppose this?

"...Kind of a windfall shopping spree..." Isn't that the intent, to stimulate spending? This type of spending benefits everyone. It doesn't have to be only for housing.

Without comment, in general, about the overall stimulus package and current policy, one of my big gripes is that not everyone gets to participate except for those who need a new car, refrigerator, heating or air conditioning system... And, the car dealers, the manufacturers, and the banks. What about everyone else?

Provided tax credits or other method for everyone so each of us can go spend, buy what we needand not what some Washington bureaucract thinks I need or wants me to buy because they think they know what's best for me.

OK, I can feel my pulse rising so I'll stop... :)

Extend it! I agree that the government is going further into debt whether we like it or not.

Being active in TAR and NAR, I have to start out by saying, Realtors that don't understand all the things the their state and NATIONAL Association of Realtors does for them may think they are stupid but in reality, they do a lot more for the individual Realtor than anyone else will ever do for you. They are not only looking out for the Realtor but the industry as a whole and they have great benefits and services that are available for those that are smart enough to look at them. That being said, This call to action also has me on the fence a little. Though I support helping first time homebuyers getting into a home, I think the move up buyers and those that are in situations that eliminate them from this program, like those going through divorce, are being left in the cold. If this incentive is the "only" thing getting buyers to buy, then this foreclosure issue we are currently in will be a never ending cycle.

I understand your thought that it is another government giveaway, but let's look at the money spent vs. impact. Altamonte is not so far from Oviedo, where I am based, but in our office, about 25-30% of our total sales are first time buyers, and they are purchasing while the prices are low and interest rates are great. That $8000 is not being refunded immediately, as most folks will be putting on 2010 return, and receiving in the second quarter of 2010. In the meantime, that $8000 will have returned to the federal government in the form of income taxes on the dozens of practitioners in our business, title, mortgage, carpet cleaning, roofers, electricians, lawn care, flooring installers, and surrounding businesses in the area. Instead of these businesses shutting down because no one is buying their service or product, they are potentially adding new employees, and the existing ones don't get unemployment checks (more expensive in the long run), but instead get actual paychecks from actual companies. Isn't that what free market economies like ours need? My figures show the government actually gets back more than an $8000 return from the rebate checks. So rather than complain, enjoy the market turnaround, and urge your Congressional reps to expand that benefit to even...dare we say...investors? Even a $5000 credit would spur at least $8000-$10,000 in additional tax revenue from actual income taxes, so expand rather than contract this one!

Hi Rob,

I too am on the fence with the national debt so out of control. It is indeed scary to think about.

But on the other side, here in NC home prices soared so fast the last few years that we have priced the first time home buyer right out of the market for good. So for the few who have done a good job of saving money, holding their jobs and seeing a great deal they can take advantage of, I am all for it. The deserve it. And I have to say that even if they do take the money and spend it frivolously, hey! They are spending, which helps the economy. But I have to say that the few who I have dealt with are not spending frivolously. One is using the money for a new HVAC sustem when they get it. Another is saving for their new baby. So I don't see that happening. Hopefully, most will use the money wisely, unlike the banks who forked out millions to employees for 'failing'.

So I guess I am more for the tax credit than against it. And if it will continue to boost sales, then Realtors may be able to continue to put food on the table for themselves. And maybe a few more foreclosures will be avoided if the sellers can find buyers soon enough.

This is indeed a tough one.

Extend it, housing is the #1 driver of the market, it we truly want to see the economy rebound it all starts with the housing market.

I think I am also on the fence here. I am all for stimulating the economy when it comes to real estate sales, but I am not sure this is being done the right way. We need more solutions

As a Realtor of course I love it, just as car dealers loved cash for clunkers. When I put on my American hat I feel totally different as the $8,000 for every person is being financed by China with the U.S. taxpayer someday in the future having to pay the $8,000 plus all the interest owed on the bonds being bougt by China. Not very appealing, especially for the younger people that will have to pay it back. Already with cash for clunkers dealers are reporting horrendous sales once the program ended. I'm afraid that the same could happen with housing or that people will get so used to it that it can never end. If they are going to give the taxpayers money away I would prefer a program that would give a small tax credit at purchase time, a larger tax credit when the person owns it for three years so it goes to those who are going to keep the home. Unfortunately, when we take taxpayer money to reward people to purchase one item it can hurt the sales on other items. For example, I lost a sale to cash for clunkers when my buyer bought a new car using the program. The almost $500 per month that they were going to pay for their car meant they no longer qualified to purchase their home. I warned them not to buy anything until they closed but they got caught up in the excitement. So they got their $4,000 for their car, lost the $8,000 for the home and now when they get married they will have to rent an apartment due to cash for clunkers. I'm a free market supporter and believe that the market will find the proper pricing then recover. The extra cash boosts the market artificially and I believe could cause a big dip in sales when it eventually stops, whether that is in November or some later date.

I'm normally a "keep the government out of our business" guy, but the impact of this tax credit cannot be ignored. Almost 400k homes sold that wouldn't have.

I hope our congressmen can quit fighting about health care and extend this program.

Here's an article on the subject from the NY Times http://www.msnbc.msn.com/id/32872167/ns/business-the_new_york_times/

According to the article the program is on track to cost $15 billion (yes with a "b") which is almost twice what was predicted.

I'm against the idea of increasing the credit to $15K for EVERY BUYER but think there's some good to continuing (even at a lesser amt) for 1st time buyers. I know it's helped the industry but I'm quick to think that helping industry does not equal helping the people and the economy. I feel a lot of these buyers would've bought homes regardless and I'm concerned that free money for frivilous purchases isn't the message we should be promoting at this time.

I think we as a country must focus attention on programs that work to get our citizens out of debt and back towards saving for their dreams. We are one nation under debt right now and with credit cards playing their nasty games of rediculous APRs, etc it's getting harder and harder for folks to get their debt under control.

I would like to see the tax credit extended and modified. Maybe, lower it to $4,000 and include it to both buyer and seller. I think it would help those sellers that are on the bubble of no equity sell their home and avoid foreclosure.

What this fails to identify is that without this stimulus, our industry, the housing sector and retail sector doesn't have a chance in heck. Without it, there are no improvements in job creation and besides, we have a incredible amount of inventory that the banks have not released yet. whatever your politics, to be against this is plainly lacking common sense. Let alone the 100's of thousands of loans that are adjustable that are going to reset. I am known for my frank and sometimes overly honest opinion but some of the very RE Professionals that will chime in this post & against this stimulus were crying poverty not too long ago (and some still are). I am sure that many of the same people were all advocating the previous administration for & on all the corporate welfare that was going on too. Ironically, these very same professionals need this stimulus whether their politics gets the best of their senses or not. I for one am in a much better place than 2 years ago. God Bless the Tax Credit and America.

Tracy stated the following. "And, correct me if I am wrong, but I thought this was more of a tax-free loan? Who, in their right mind, would oppose this?"

Tracy, last year this was a tax-free loan, however this year Congress changed it to be a refundable tax credit. This means the buyer never has to pay it back. It is all the taxpayers that have to pay it off. As I said previously, it is now being financed by China and others, but ultimately the taxpayer will have to pay it off with additional interest as it is debt that we are selling to pay for it now.

I'm not on the fence, I'm all the way in with both feet. The only buyers that matter in our entire industry are first-time buyers. They are absolutely the most important piece. A first time buyer typically buys a small starter house, allowing that homeowner to trade-up to something larger, and in turn that homeowner can build their dream home. Every first-time buyer has the potential to generate three or even four sales, with the construction of a new home at the top of the ladder, the creation of jobs and the purchase of building supplies, transporting construction materials to site, laying infrastructure and paving roads. The government may be taking "your" money and "giving" it to first-time buyers, but they are turning around and giving it right back to you because one of your listings sells. Extending the tax credit is crucial to a full-blown recovery because the average age of first-time buyers nationwide is 30 years old, and the generation UNDER age 30 (Echo Boom) is absolutely enormous, larger than the Baby Boom. Tapping into this enormous age segment will encourage those who are financially able but perhaps not yet of average age to enter the market a bit earlier than they had planned, stimulating the trade-up cycle, stabilizing prices, avoiding or absorbing foreclosures and getting things back on track. Once these generation matures financially and begins to enter the market naturally, they stand to create 3 sales in the Baby Boom seller segment for every ONE of them. Support the extension of the tax credit and prepare for the next boom which could make the last boom look like a joke.

Hi Rob,

Way to start an open discussion o the topic of the Tax Credit! I have read all the comments and am in agreement that most don't spend it frivolously but are using it wisely to improve the current state of their own economy and preparing to live in their new homes for years to come. First time home buyers have waited for a window where they can not only afford a home but also to be capable of maintaining it and keeping it out of foreclosure.

I am all for the extension so many desperately need! Hopefully most have learned their lesson and are thinking before spending and therefore using the funds to improve their lives!

Regards,

Kat

I agree with Frank Rubi... let it expire and consider some fututre date for a possible second time-frame for the tax credit. Inventory has been abundant with historically low interest rates an an excellent affordability index. Let's not push people but let's keep them motivated. The market will continue to mend. Everyone needs to live somewhere.

I do think agree with some of you who think it expiring will get people out there. But I know that if it expires, the first time home buyers will feel like they missed out, and will not feel it necessary for them to buy right now.

What it did was encourage the majority of young people that maybe didn't have a downpayment and/or emergency fund set up to be able to buy. It doesn't mean they were irresponsible, they were just busy paying for college or keeping their car running

As a real estate broker, an extension (or preferably an expansion) of the tax credit is a good idea since it will spur sales. However, as someone who cares about the long term stability of the housing market, it is a very bad idea.

This market was caused by artificial government stimulus (think Community Reinvestment Act, repeal of the Glass-Steagall Act, FHA and other phony low and nothing down financing programs) that enabled financially unstable buyers to buy homes. Plain and simple, if you can't save a reasonable down payment and need the $8,000 tax credit to be able to buy a home, chances are that you will not be able to pay your mortgage for more than a month or two if you lose your job, or even experience a modest loss in income. If the housing market was allowed to stabilize on its own, prices would decline to historical norms based on incomes in an area (i.e. housing would be truly affordable) and not some nonsensical measure such as the NAR Home Affordability Index which heavily factors in interest rates. The reason that is a problem is that it is much better to pay less for a home, but with a higher interest rate then to pay more with a lower rate. Even if your monthly mortgage payment is the same either way, paying more leaves you with little to no exit strategy if you need to sell due to job loss, etc. Every one of these "stimulus buyers" that needs to sell within 2 years of buying will be a short sale due to having no equity to begin with. If interest rates increase (driving the NAR Home Affordability Index down) then by definition of the Index, housing is less affordable and prices need to decrease. That is why basing home prices on debt and interest rates is very dangerous and foolish. Remember, you make money when you buy real estate, not when you sell. The reason is this true is that you should always have an exit strategy in mind in case you need to sell, want to take your profits, etc. These "stimulus buyers" have no exit strategy because they have no equity. It's that simple.

I say Amen to BB's comment.

The intent of the $8000 is to stimulate spending so I think the "windfall shopping spree" is exactly what we are looking for.

As far as the extension; I think in any other situation, the credit could be revisited in early 2010, HOWEVER, because of the banks not approving short sales in a timely manner, I have several clients waiting and hoping they can close before November 30. I don't beleive they should lose out because the banks are not staffed, motivated, caring, intelligent, business savvy enough to get the deals done.

Why is that the REO divisions are moving properties when they need to (and are allowed to) but the short sale arena is a large bottle neck of excuses, deception and stalling?

Now I am ranting...

Denver is a great market right now (comparitively). I have worked with a few banks on short sales that DO get the job done. I am grateful that I am still selling homes!!

I would like to think that the "frivolous" items you alluded to are the things that are helping spur the economy.

However, that being said, the $8000 stimulous monies helped one of my sons by a home he could never have been able to afford to purchase & renovate. He put in a new kitchen in a aged home that he purchased in April( 2 Realtors made some money). Way down to the manufacturers and then the tradespeople, and ultimately the community benefited from this Stimulus money.

Lets see here.gut renovations with new plumbing(the plumber made some moeny), new electrical(the electricial made some money), new flooring, new cabinetry, new appliances, new sheetrock, new counters, new sinks & faucet. Lets also look at new windows(Energy Star Credit). Let's also look at the fact that this home was in a marginal neighborhood - Revitalization to an Urban area.

All in all, I'd say that the credits worked well for this purchase and as intended by the Tax Credit bill.

For the young and first time buyer, this is a boon...to the economy in his area..this is a boon..to the FHA which languished for years...another boon. I think our tax dollars are being spent wisely. FDR put people to work with massive spending by the government. It encouraged a Nation of people and spurred the economy for another 60 + years. His plan provided the stimulus for your parents and mine to make a much better life than they would have been able to under the dire circumstances the Nation was in.

I think we have to revisit that "Good Deal" Great Deal" A chicken in every pot mentality and apply it to our current economy. I think the youngsters and lower income earners of today need this to even stay in the game.

You neglected to mention that their is a "cap" for this stimulus money. The ones who don't need it, don't get it! $150,000 income earners and over are not entitled.

The future can be analyzed by looking at the past.

For many of our buyers here in Fort Myers and Cape Coral, that $8000 is going to purchase air conditioning systems and applicances that were stolen from the home they wish to buy. In our case, it's not frivilous spending - they certainly can use every nickel!

EXTEND THE TAX CREDIT AND EXPAND IT TO NON-FIRST TIME BUYERS. Government intervention is critically needed at this very important time in the US. We better hope that the Fed does not take the advice/rants of some who want NO Government intervention. Interest rates will likely shoot up to 12%-15%. How many folks do you think would be considering a real estate transaction then? Certainly not investors and absolutely not owner occupants. EXTEND THE TAX CREDIT AND EXPAND IT TO NON-FIRST TIME BUYERS NOW. THIS IS WHAT EVERY NAR MEMBER SHOULD BE ADVOCATING.

Rob- I think it should be extended for 6 months at a lower rate, and if need be an additional 6 months after that. So perhaps $6K Dec 1- April 30th and depending on the state of the market at that time $3K until Nov 30th 2010. The deepest individual hit the economy has taken is housing and we know how it's rapid deflation caused a virtual collapse of the markets. Housing is an essential building block of the American economy and dropping the stimulus at this point might be like pulling the plug on a fragile recovery. It's not just housing values at stake, (if that were all I'd say let it find it's own legs) it's the re-employment of the construction industry, the handyman, the plumber the electrician, and the attendant retail markets; the home improvement stores, appliance manufacture etc. It is really a back to work program and unemployment is still too high. Amy Fisher CRS, VP Realty Group Inc. Washington DC.

Bad. It will put all of the current buyers right back on the fence. The reason marketers put deadlines on coupons, is to have people react to the deadline and buy something. Extending this before it expires will hurt our current group of buyers...the mantra will become, why not wait for all the foreclosures that are going to hit the market and get a really good deal. This can always be extended or recreated. Finish this first one first!

I've said it before and I'll say it again - I wish they would allow this tax credit to come to fruition AND then evaluate how it impacted the real estate market. I'm seeing all sorts of numbers here but not facts. Continuing anything without understanding whether or not it actually did stimulate the economy makes no sense at to me.

From an earlier response of mine:

With 2010 being a mid term election cycle and real estate being a major contributor to the overall economy we can expect some type of "help". As we discuss this we have just witnessed politicans take trillions of dollars out of the productive economy and spend it on pet projects. We have been asking China to finance these pet projects and new entitlement programs and when they stopped buying our treasury bonds, the government "loaned" money to the banks and they inturn buy the bonds.

What we have witnessed over the past 10 months is the migration of both power and money from the financial community to the political community. Now to remain in power they must pull out all the stops...even as the voter are now understanding that we can't borrow our way out of this mess...just like we can't use credit cards to solve our personal credit issues.

KICKING THE CAN DOWN THE ROAD:

The $7,500 "loan program" was the first "can" kicked down the road by the political community to make the "voters" happy...the program was not big enough nor attractive enough; a bigger "can" was needed. Thus we have the current $8,000 "can". Some what more attractive, especially to both first time homebuyers and realtors. But this "can" is only working for those select few first time home buyers and for lower end inventory. To get the housing market really back on track a much bigger "can" is needed...maybe more than $8,000...maybe the $15,000 I have seen in another bill.

While I personally don't believe in these "bailouts"; this type of tax credit proposal has some merit, especially for first time buyers. With first time buyer, the $8,000 will more than likely be spent and spent quickly on such things as appliances, carpeting, furniture, paint and many other things that are produced here in the USA. Given a multplier effect we can expect about a 7X or a $56,000 impact into the economy for each $8,000 given to a home buyer.

So when I look at this type of program (pure tax credit), relative to other programs (cash for clunkers), it has more positive economic impact than many of the other alternative that politicans will deploy to keep themselves in "Power".

Enjoy it will you can!!

Your stats are very interesting, Rob. I had no idea there were so many cash buyers out there.

I like the idea of extending the credit ... but not until the clock runs out on the current program.

I also feel that extending it to all buyers is not a bad thing. Many current homeowners are sitting on the fence because they've seen equity shrink drastically. Shouldn't they have a stake in getting things rolling again, too?

There were only a couple mentions of the psychology of extending a deadline so I'll add another. If this is extended, then we will never be able to use these dates as motivators for customers to take action. It's like when you show homes and they keep getting better; "Why should I stop and buy this one?"

This one should expire exactly as written to establish credibility of programs like these. The public is already cynical and an extension will fuel more of it. Next year we do something different. (You may watch my free tax credit video as part of my "Knox First Tuesday" series #12A.

Extend it!!!

All great ideas eventually change. I would like the credit to continue at least one additional year, but at a lesser amount. As our economy gains strength, it should be reduced to let's say $5,000 and so on if needed. The purchase does so much more than just help Realtors, it gives jobs to appraisers, inspectors, builders for repairs, and bankers (not all are bad). Like the auto industry, the housing industry affects a lot of supporting businesses. We all are saying America needs jobs to climb out of this hole, let's just be smart about the debt we incure while putting people back to work.

Rob,

There is without question arguments for and against the tax credit for first time buyers. In our Minnesota Real Estate Market we have seen a spike in home sales largely due to this credit. As financing has tightened, especially that of the conventional loans availability...this has been a great way to offset the damage that has been done while greatly reducing the foreclosure and short sale properties currently on the market.

Yes, this positive viewpoint is a bit self-serving as obviously it is good for our industry to get the fence sitters motivated. As it has been mentioned by others, this goes further into stimulating the economy and our battered housing market. This has a long term effect of stabilizing the housing market. Most of those who are taking advantage of this tax credit are buying the lower priced homes...the same price point that has seen the glut of foreclosures recently. It all starts at the bottom and works its way up, when we get the lower priced homes moving and thinning out the inventory it allows those sellers who are move-up buyers to make their move. I have had many sales this year who have been the result of the ripple effect this has on the market.

I am no fan of the adding of our debt to fund these programs yet this program more so than the cash for clunkers or the bailout of the financial institutions does get right to the source of those who need the funds. As for the spending spree's that the $8,000 may bring on...great, that is the idea. Also note that most buyers who will be taking on these funds will be sinking the funds back into the often distressed home they are purchasing. Kinda nice to know they will have a way to pay for the soon needed furnace, new roof, or hefty repairs that are often associated with price point sale.

The biggest reason I am concerned for this program is that it may be pulling buyers out of the shadows who really shouldn't be buyers. What I mean by that is that due to the loose practices of the FHA financing qualifications...we are placing people into homes that may be our next wave of foreclosures! Keep in mind that we are barely past the midway mark on projected foreclosures based of the Alt-A and Stated Income mess that is hitting the market now. The government will be smart to keep this program in effect for another year and should possibly open it up to all vs just the first timers. In our market, any of the lower price point homes of around $150,000 or less are getting multiple offers in a matter of days, most of which are from first time buyers in a rush to purchase for the credit. Many of the banks have become hip to this trend and are pricing their foreclosures notably low to capitalize on this large buyer pool, often then placing a "best and highest" offer deadline with the winning bids commonly $10K-$25K above asking. Interesting strategy that gets these first time buyers in a auction type frenzy over fear of missing out.

My prediction is that once we get close to the Nov. 30th date, the program will get extended through the year end of this year or until tax day 2010. If the current trend of increased sales continues during that period, it will probably even get extended beyond that. Of course this would make sense, so probably this option will get overlooked by the government in their great wisdom for course setting in our economic recovery. The best thing we all can do is get involved and voice our opinions to those who can implement change.

Good luck to us all!

Chris Robertson www.BestHomeForU.com

Both FHA and VA programs were introduced to spur purchasing of starter and first time homes. Now we've thrown something new in the mix. The "up to" $8000 tax credit is being used to offset the additional funds that a homebuyer must have to purchase a home. In our area of northwest Florida homes from $50k to $175k are ones that are selling the best. First time homebuyers qualified for the credit? Who knows. As an industry I wonder what the true figures and percentages will ultimately be.

Our Country seems to be run for 10 - 20% of the population. What about the rest of us? Alot of money is being spent, but where and just how much of the population will benefit? My concern is that our bills and spending are being determined by aids and first level staff. Our congressmen and representatives truly have no clue what is included in the total bill, nor the costs. They are read the synopsis.

I wonder what would happen if we truly held our representatives to Congress accountable for their actions or inaction? The longer we ask the "Government" to handle social and financial challenges to take it off of the shoulders of the individuals and the local community to handle the more it costs and freedom of choice is lost - the more it costs the stockholders of the Government - that would be you and me. The more it costs "our company" to run the programs given the less benefit we will receive and we have to up our contribution to keep our company running.

That being said Housing, Military and Medical are the largest segments of our economy. What is being done to shore up and support the hidden unemployed? Spending is down...I wonder just how much of that spending is the result of unpaid self employed - Realtors, Builders, Contractors?

We love to bash the government for spending OUR money on dumb things. But with a cash injection indirectly into our pockets it "just makes sense". haha

This taxing and giving is a short term issue that will cost us much more later. The people who will use this cannot afford a house because they do not have the self discipline to save. They will add to the foreclosure crisis. The government (both parties) caused the financial melt down by forcing bad loans on banks and creating a false DREAM. Yes, my buyers will use the credit, but they will have already saved, paid on time and earned the ability to own a home.

Note the Washington Times article that the Whitehouse is searching blogs and social sites for negative comments. "A government that do anything for you can do anything to you".

Please stop looking to the government to solve your business fears. Just be proactive and intentional with your day.

I hope this helps.

Tony

I'm on the fence with the tax credit. I think extending it will help in bringing forth recovery in real estate, but it will increase our deficit.

Oh boy! I was waiting for the conservative conspiracy theorists to come out. Now our blogs are being spied on by the Liberal boogie men! Oh no!!! Bet you didn't complain when they were wire-tapping phones. People lets use our common sense for once!

I'm glad to see this article Rob, as I think we really need to analyze these questions! I am not in favor of it, and I think programs like this do create dependency and ultimately weaken our great country. Home ownership is the American Dream, and dreams are achieved, not handed to you. After speaking with a local lender about it a while back, my understanding was the primary difference between this current program and what got us into the mortgage crisis to begin with, is lenders are verifying income, and of course. Great, so they have a job today, but what if it goes away tomorrow...? And of course, now they have $8000, in theory to help them pay their mortgage... I know I sound harsh - I don't mean to be a pessimist here - I'm all for stimulating the economy, but I'm after long term results, not a band-aid, and I'm just not convinced this is the solution.

The federal deficit is ballooning out of control. If we are going to extend the tax credit it needs to be a "win-win-win". Our government needs to learn how to stretch a buck. The extend credit should only apply to energy efficient homes. That would reduce imported energy, reduce pollution, get sellers/buyers out there spending the money, and keep the first time buyers interested.

I think it's a bad idea. Even the recovery we may have in the market...will be short lived. I would rather have buyers buying because they have stable jobs & not rush buying something because of a one time credit. I think it's good for everyone to have a normal recovery than a Fed induced artificial one that might not last...just mt 2 cents.

I to am not sure about this $8000 tax credit. Yes it is good for us however it will add to the deficit. Could there be a better way that the first time home buy's could get the credit but be given in a different way like be given a deductable on the next years taxe's?...Ann

I'm kinda at the middle of the road on this because I'm on the mortgage financing side. I have seen better buyers since the down payment assistance program was removed and that was before the tax credit program was put into effect. The Real Estate market in this country has to be stimulated some kinda of way but some areas in the country are buried with homes that are upside down in value and sitting vacant. Here in Columbus, Ohio I'm starting see more people trying to purchase homes because of this of the tax credit program, good buyers too, Columbus made the top 10 on increased purchase prices in the nation, so I would probably say the program has more " Pro's than Cons".

First if all, we all pay to much in tax to the government. If you want to take away tax credits for 1st time home buyers then you may as take away tax credits for energy efficient windows, new energy efficient heating systems or solar & wind projects and on and on.

There was a comment that people were spending the $8K tax credit on frivolous purchases. How could that be when they don't have access to the $8K until after filing taxes in 2010 for 2009! Now, here in Massachusetts some 1st timers are able to access the $8K early BUT it has to be used towards downpayments and closing costs. Hardly frivolous!

Is the tax credit good for the country? I think so. Why? With roughly 40% of all jobs being associated with the housing industry it is well known that housing would lead the country back from this recession/depression. I'd rather that my taxes go to aid qualified 1st time buyers purchase a home than to the greed mongers on Wall Street that have taken our tax money and paid billions of dollars in bonuses ($11 billion, this week, was paid in bonuses at Goldman Saxs).

So make a choice. Stimulate qualified purchasers to enter the market OR give it to the wealthy 1% who have no need of more. When is enough, enough?

Doug

Have clients moving to the Massachusetts North Shore? Send them to me via referral. Contact me and we will talk.

Extend the credit. Question: if it is a credit, then really the borrower is not paying tax money as opposed to actually receiving money from the government, as in other bailouts? Is it a semantic issue? Does it increase our debt or just make the govenment live a little more within its means (ha)?

Kathleen Barnato Montecito, CA prudential CA realty

Morning Rob, I support the efforts to get the housing industry rolling again. In the case of the $8k credit I think we need to let it expire as an incentive to those on the fence ( to get off the fence ! ) and renew/expand it later.

I say let it go. If a buyers needs the credit to purchase they probably can't afford the home. That is what got us into this. If a buyer cannot save money above and beyond the rent, they will probably end up in foreclosure. This has been a band-aid not a fix.

Rob,

I think any TAX incentive is a good one. They are offering a tax rebate to these buyers and I know it is symantics but I like the idea of less tax. In Northwest Arkansas it is really responsible for jump starting our market. As more first time buyers took advantage of the Tax credit we have seen sales rise up through all price ranges in our market.

Chris

Rob,

I would like the government to let this current tax credit expire. I would like to see them create a new tax credit that starts at $8,000 up until a particular date and then adjust to $7000 by a different date and then continues this pattern until it dissappears. I think that will encourage buyers to act sooner than later but will not cause a drastic drop off of sales once the program is finished.

Adam

This is good if you are the 1st time home buyer. Good if you are the Realtor trying to sell the home. It adds to your marketing to convince the buyers to buy.

This is bad if we the taxpayers will have to pick up the tab for each and every home that uses this that increases the deficeit.

I think that extending this tax credit is an extremely short-sighted approach to stimulating the housing market and therefore, the economy. All we are doing, truly, is postponing the inevitable. Government is NEVER the best answer to any problem. In fact, much of the reason why we're in this mess is because of the decisions made by our illustrious government, first with the housing "affirmative action" initiative (http://www.youtube.com/watch?v=ivmL-lXNy64) and second, the lack of regulation of Fannie and Freddie (http://www.youtube.com/watch?v=_MGT_cSi7Rs)

So to hope for the government to come and be our savior for one more year by extending the tax credit is silly and naive. We need to ride this thing out, even though it will be financially painful for a while. I did not have the benefit of being a Realtor during the boom. I got started in the 2nd quarter of 2006, and it's been an uphill battle for me ever since then. I would rather my business suffer for a while in order to keep our taxes from going through the roof in the long run to pay for all of these bailouts. What will happen then? How will folks be able to buy homes when their taxes increase exponentially? What will happen to the value of homes and our economy when very few people can buy homes due to the tax burden they are stuck with? Guys, this is not a good plan. Please DISCOURAGE the government from extending this credit.

I happen to think it is a good idea. First time buyers free up sellers to trade up and a tax credit doesn't require the government to borrow the money. It will do far more to stimulate the economy than it will ultimately cost us.

My guess is many of the same Realtors in favor of extending the tax credit would have been opposed to cash for clunkers or the bank bailout. Isn't this a bailout to a certain degree? What about stimulus for furniture manufacturers or appliance makers, or (name your industry). It creates a false market and the long term repercussions of piling additional debt to our economy (and subsequently our children) in my mind outweighs the short term benefit of increased sales. I agree with comment #56, Kathy, and others...don't extend the tax credit.

I'm NOT on the fence! This needs to end and end now. The govt helped many buy new cars and many others buy homes. WAIT, not the govt but us, our children and our grandchildren are going to pay heavily for artificially manipulating the market. If you are going out of the business next year it is understood why a little greed now pays. The program has put buyers in the market earlier that they would normally be at the cost of sales over the next 2 - 5 years. I have 2 buyers that may or may not make the deadline. Too bad, it is not like they did not have plenty of time. If they don't make it at some point they will be ready. They may be better off too. Most areas have seen the inventory of entry level homes fall dramatically due to this program and it needs to rebuild some.

Hey obama- how about some help on a new boat instead?

As a loan originator in the Minneapolis, St Paul MN area, while not scientific, I would say that the $8000 incentive has been successful in getting people into the housing market.

BUT, probably 60-70% of the people DON'T NEED IT to actually buy a home, but if someone is giving it to you for free, they are all saying "you might as well take it".

Rather than give $8000, I would prefer to see FHA offering true zero down.

My vision would be to offer FHA zero down, but the buyers would have to pay a penalty for going zero down. For example, they would pay 1/2% higher rate, and the up-front MIP could be 2.25% versus 1.75%.

The higher rate and higher up-front MIP would be used to offset the higher defaults on zero down.

If you don't like it, save your own down payment, or get a gift from a family member.

This way, the additional MIP and higher rate should self fund, costing the US taxpayer NOTHING. At the same time, it would still work nicely to get people into homes, and incentive them TO SAVE THEIR OWN MONEY for down payment to get a better deal!

www.MinnesotaBestRates.com

Wow, Lots of lengthy comments on this one! I will be very brief.

This scares me to death. We are encouraging buyers to buy for the wrong reasons. (again!) In my opinion, when people buy for the wrong reasons (all 8000 of them) they are more likely to default on their responsibilities (loans) in the future. They buy homes that they can't afford, don't like, or just don't fit their families in an effort to get a government freebee. If they realize that they aren't going to be able to sell it next year for an astronomical profit, they will just walk away.

If that doesn't make sense, then I will just have to quote my Grandpa Hall, "You are writing checks that your butt can't cash!" He usually said that as I was getting ready to do something stupid.

I say make the tax credit available to 1st time homeowners purchasing their primary residence that have 10% down. I feel if people actually had their own money invested in their home, rather than the 0-3.5% invested, our situation would not be as bad today.

First time buyers credit has been helpful, yes; however, at some point we need to learn how to do business without it. The other day I was listening to a commercial on TV where a new car buyer said "I lost my job and no one would give me credit but ------ car dealer did." Isn't that just what got us here in the first place, people spending money they don't have and lending institutions giving money to people who should not have it? Of course there lots of other issues in our country, but when it comes to real estate, I think we are better off having home buyers be able to stay in their homes after they purchase them.

It will take more time for the real incentives to buying a home to return: security, steady building of wealth, independence from a landlord, pride of ownership.... The broad underlying statement of artificial incentives (the real estate industry is so troubled that it needs to give tax credits) does not strengthen the real incentives for buying, if anything it weakens the real incentives!

Mark makes a lot of sense. Too often people make decisions for what is a temporary benefit. In this case although $8000 is a lot of money to many people it is not money in which they invested their own toil, self discipline, time and tears into over a period of months or years.

Many first timers have a limited appreciation of what home ownership really costs and if they enter into home ownership prematurely they enter with the tenant mentality of having the landlord pay for the repairs, taxes and myriad expenses of owning real property. But, guess what? This time there is no landlord to pay for the repairs and they have figure out a way to do it.

This is the only Government program putting money in the hands of middle class working people. I would prefer big across the board tax cuts for business, individuals, and corporations but that is not going to happen. If we are able to buy we will probably waste ours on things like food, utilities, etc. . .

If I am lucky I might be able to take my family on a vacation; something we have not had in a long time.

No more credit, let it expire. I'm not the type of person that says "well they are going to spend it anyway" I'm more like the person that says "Government QUIT spending OUR money foolishy!" We all need to stand up and fight back instead of being on the fence ourselves... Hence, the Tea parties etc that have been going on for months now.

I think it is helping. I say extend it. I don't feel so confident about some of the other stimulus packages, though.

I've found that most people are NOT OPPOSSED to the govt. spending money, they are opposed to what the gov.t is spending it on!

The only thing that will improve this economy is JOBS IN THE MANUFACTURING SECTOR ... what manufacturing sector...? That's the point. We need our govt to step in and reinvigorate this sector since it has the potential to provide JOBS FOR THE MIDDLE CLASS.

I think our President is the first in a long time who actually gives a darn ... he's smart and he's not treating us like children. That's good. If he is also as wise as I hope he is, he'll recotgnize that while it is important to give everyone a chance to go to college, it is equally important to recognize that not everyone wants to, or is interested in the kinds of employment for which college is necessary.

If people have JOBS, the $8000 tax credit is unnecessary. They'll buy a home because they want a home and they have the security of being able to afford it. The money should go toward the creation of JOBS in significant numbers.

I work in the south chicagoland market and we were VERY slow until just this month. The tax credit is getting first time buyer's off the fence. I am all for the tax credit because I can actually pay my bills this month. I prefer the tax credit not be extended. Definitely not until after the deadline. I liked another post that suggested revisiting the issue first quarter of 2010. I definitely do not see a point in increasing the amount - actually $5,000 would still motivate people.

Please no more bailouts!!! This last Credit has cost $15billion-that's more than twice the amount that was projected when Congress passed the stimulas bill back in February. Let the market settle down for a while. I argue the fact that most of that money is going to people who would have bought a home anyway. Is this really the best way to spend money we don't have??? Contrary to public belief, many Investors ARE getting the Tax credit. I could tell you stories all day long how they are doing it! I don't care to participate-Thank you very much. I know we all want to make aliving but all this is doing is robbing our own bank accounts. GIMME! GIMME! GIMME!- WHEN IS GOING TO STOP????????????????????????????

We are a confused society, yet America still manages to grow. We ask for affordable housing for everyone, then find out that not everyone will work to keep it up and make payments. We ask for dependable cars that last for years, then wonder why the auto industry is laying people off when sales go down. We ask for longer lasting technology and wonder why technology companies aren't making huge profits when we keep our computers for five or more years now.

The $8000 credit is a distraction to buyers that maybe should be saving for a home instead of running out to meet a deadline to "cash in" on the credit. As many above state, when there is involvement and personal contribution to the sale, the owner will tend to take a little more pride and try to keep their investment up and look forward to the long term.

Government has also made walking away and foreclosure too easy for borrowers across the board. Now they can walk away, blame the company that laid them off, and get another loan in 2-3 years. It is insane, where is the motivation? And we blame the banks????

But, somehow Americans continue to progress and will eventually move on to another crisis. Hey, did you know we are at war? We have an all volunteer military (and CIA, FBI, etc) and they are keeping the bad guys out of America (for now anyway).

It is working for me! I recently sold a home to a 1st time buyer. Then The sellers moved up to a larger home worth $100,000 more! I like the bubble up economics rather than the trickle down!

Almost all my buyers are getting some or all of the $8000. So as a Realtor I want to keep it. As a tax paying citizen, I think we should phase it out over the next year. Maybe reduce it some each month till it is gone.

Extend it! In our market (Which is a smaller market), Buyers are just now becoming familiar with it. We do not have any form of television or print advertising (Govt. sponsored) alerting home buyers that this is something a lot of them can take advantage of. The responsibility of getting this out has been on the shoulders of local Realtors, lenders, etc. Extension of the tax credit will have a positive impact on our market and others across the nation.

How about all of you who live in the non ridiculously high cost-of-living areas (such as the SF Bay Area, where I live and sell real estate) give your area's share of the $8000 per first time buyer to us?

Even though prices have dropped and the median affordability index has improved, my client's reality is still that it is difficult to qualify for a first home. Along with very low inventory in the under $300,000 price range (yep, you read that right: $300k is low for us!) and multiple offers on everything that is not a short sale, our efforts to beat the Nov. 30 deadline is making for tired, frustrated and discouraged would-be buyers and agents.

I'm not surprised that 42.5% of all sales in Rob's area of Florida were all cash. How do you think the investors are competing with owner-occupant buyers? Banks are taking all cash deals from investors in favor of financed deals from owner-occupants. So, absentee owners are supposed to revitalize all the blighted neighborhoods? Don't make me laugh!

Hey, if things were really "fair" or "made economic sense", the tax credit would have been indexed to rise or fall with the median price range of an area. If the intent of the bill was truly to inject some activity into the market, why limit buyers in California to an amount that goes only 1/3 as far as for a buyer in Mississippi?

As far as the $8000 being spent on frivolous items, I think whoever believes that theory isn't really looking at the homes being purchased. Most of these homes are foreclosures that have been abused and neglected. The $8000 is being earmarked for improvements such as carpeting, new roof, replacing landscaping, etc. Isn't the point of the credit to stimulate the economy? Buyers are doing just that by improving their new homes and purchasing goods and services that are part of the overall "housing marketplace".

My vote is to leave the tax credit alone. If we can't do that, then perhaps we can make it even better by enlarging the scope to give buyers in high-cost areas a more fair percentage of assistance. Hey; with our changing weather patterns, there just might be a cold day in hell, doncha' think?

DISGUSTING!!!

The National Deficit is already out of control... THIS IS NOT FREE MONEY...

The NAR video of Pandering REALTORS is an absolute TRAVESTY for the profession and EMBARRASSING.

Housing (and the economy) will recover when Prices are where they should be before ALL of the TAMPERING by artificially LOW Interest Rates / LAX LENDING STANDARDS that created the Real Estate bubble / Homes used as an ATM machine.

Have we not Learned ANYTHING??

No Wonder Real Estate Agents are right above Used Car Salesman when it comes to Opinions of Professions by the public...

DO WE HAVE NO PRINCIPLES???

Hi Rob:

From the IRS website:

Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer's payment obligations? A. If the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09)

I love creative financing to buy and to sell.

See http://www.irs.gov/newsroom/article/0,,id=206291,00.html

And, for folks wanting to inform Buyers and Sellers of Installment Sale Taxation, see

Publication 537 (2008), Installment Sales ... An installment sale is a sale of property where you receive ... If a sale qualifies as an installment sale, the gain must be reported ... Adjusted Basis and Installment Sale Income (Gain on Sale) ... http://www.irs.gov/publications/p537/ar02.html - 368.4KB

Wow, I'm overwhelmed by all the responses. This is a lot to ponder. Regardless, buyers need to know that if they don't have their property under contract by mid-October then odds are that they will miss the deadline for the $8K.

I agree that the notion of receiving $8,000 from the government has gotten many first time buyers off the fence. Heck, 90% of my business is first timers, and now, that the deadline looms on the horizon, they get nervous and worry that they could be missing out on the benefit.

I also admit that I love the business opportunity this $8,000 carrot offers to the real estate industry.

What I don't like is that we have somebody messing with everything. Bail-out here, bail-out there, companies counting on and demanding "free" money ... is this the essence of capitalism? I don't think so. I have to agree with Paul Francis - do we have no principles???

Hi Rob; good post; looks like you covered all sides of the coin and stirred the pot. I agree with the points made on market stabilization and the government hands off. However, I also agree the the taxpayers have benefited the least in the bail outs. Therefore, I would like to see a NEW tax credit offered around the middle of February up to $15k for dual purchasers of one property and $7,5k for single purchasers NOT just first time home buyers. The reason I chose those numbers was to prevent the first time home buyer who did jump into the market in '09 from feeling mislead if the tax credit was larger the second time around.

SEP

I think that the $8,000 is a necessary evil to get the RE market back on it's feet. So far it has worked.

They just cannot keep their mouths shut about anything.

Why not let it expire, get the data next tax season and see how many first time buyers got the credit and how much it cost.

All this announcement will do is keep many on the fence longer waiting for prices to come down.

Wow I was incredibly impressed with the blog and the comments. I have seen several good ideas. What I was completely suprised with I would of guess it would be 66-75% in favor of the credit. It looked to me like it was 75% against extending it.

By the way I think it would be a good idea to extend it. If someone can mention a better program than the $8,000 tax credit then I want to know what is it? It can be a credit, or an expense. Sure it would be great to have a flat tax, reduced marginal corporate rates, etc. But let's talk about what they are actually doing.

Like most everyone here, I'm torn about this also - - it's the duality of being a REALTOR vs. a TAXPAYER. I think the current credit has worked to reduce inventory - - to a certain extent. In our market, we still have many very attractive short sale properties, priced well within first-time home buyer reach, but they have been passed over because there was, and is, no guarantee that they could close before the looming deadline of 11-20-09 (I heard this as early as June) - - even though they'd be getting a great deal, buyers wanted an even better one! In our market, we also have to contend with the additional inventory "dump" that the impending closure of Brunswick Naval Air Station is causing as navy personnel are re-assigned. Many of these homes are perfect for first-time buyers, however, the sellers aren't moving up, they are moving to Jacksonville! The market we need to stimulate here is for the $200K and up homes - -in our area, this is not first-time home-buyer territory. I think the way the new bill is written, it is for a $15K tax credit and it is extended to all buyers, not just 1st timers. As a REALTOR, I say "great, we need that" but as a taxpayer, I say you are going to give alot of people a free $15K who would have bought anyway because they needed to, not because they were stimulated by a tax credit. Others have suggested there be a gap between the expiration of the $8K credit and whatever the new credit will be. I think that just guarantees an almost complete stoppage of sales during the gap period. Do you remember how people who got the $7500 credit (that you had to pay back) were upset they didn't wait for the $8K! Once you start this kind of thing, people think they are ENTITLED! Then what?

ENTITLED is becoming the key word here....

Somebody buying because they need $8,000 may be buying for the wrong reasons. There are several people waiting for the tax credit to expire since they feel prices will come down even further... and they may be right.

Do we keep the tax credit going forever?

Long lasting recovery begins when people buy because of the price and are financially sound to do so... not because of a cash back giveaway.

By the way... the money does come from somewhere...

http://www.usdebtclock.org/

Current Liability per U.S. Citizen for all obligations as of today is $192,211 ....

The true cost of the Government Bailouts is pushing $12,000,000,000 in liabilities... or.... $40,000 for each and every U.S. Citizen. (Feel free to check my math... there are so many zeroes there..)

Let me know where those trees are that are growing the money...

Pay now or pay later... either way it has to be paid in one form or another.

SEP

Hi Rob. You must be reading my mind. As a REALTOR, I'm for the tax credit as it has helped some of my buyers but some it didn't as they are upsizing or downsizing. As a taxpayer I don't like it adding to the national debt but if Congress in their infinite wisdom are going to give out the money I would rather it be given to Joe Public than to the financial, health care, unions & others who spend billions $'s wooing our elected officials to get taxpayer handouts to maintain the status quo and then years down the line we're right back here again (I heard over the weekend that Wall Street is again bundling exotic loans & making risky investments). That's my 2 cents (oops deflation make that 0.5)

SEP

Rob, I don't see the tax credit as a stimulus for the most part. A large percentage of the credit isn't a handout from the government, it's a home buyer's money that the government never receives, which I think is a good thing. It's not at all like giving money to banks or Wall Street. Now if they wanted to allow a home buyer to receive a credit totaling $8000 spread over three years, or however long it takes, to use the entire credit that might be better then the government sending homebuyers a check for the unused portion of the credit. Bottom line, just about anything that allows taxpayers to keep more of their own money I'm in favor of.

NOV

I truely think like Cash For Clunkers, it just moves future sells to this quarter. Truly would you buy a home thinking the Government is going to give you $8000. off your taxes. I want the money now, so if I was going to buy a home it wouldn't matter either way. But that is me and of course everyone else is entitled to their opinion no matter how wrong they are. :)

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