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Housing Stimulus

By
Real Estate Agent with Remax Integrity

This afternoon the Senate approved the new stimulus package. Inside the unbelievably huge, overwhelming varied bill, were a few tidbits for the housing industry.

The existing $7500 tax credit (that you have to repay btw) has been increased to $15,000 for first-time homebuyers, and the new version of the credit asks that the amount be claimable on 2008 and 2009 returns. Also, the new bill contains wording to eliminate the repayment requirement.

Higher loan limits for Fannie Mae and Freddie Mac and FHA are included as well. Oh yes, and how much did this monstrous bill cost in all? 838 BILLION DOLLARS.

Comparitively speaking, it sure doesn't seem that a great slice of the pie went towards the creation of new jobs...or the very tender housing industry. How about cutting taxes on small busiesses? I know...I know...every conservative cries this. But why is it so crazy? We can't spend what we don't make! I think this economic crisis has much more to do with job safety and creation then new FHA limits. They can make the limits as high as they want. That doesn't put actual money in anyone's pockets. And it shouldn't be doled out like candy at a birthday party. The dip in the stock market today said volumes. Sorry politicians---business owners and operators don't buy the noodles-on-the-wall approach to 'stimulus'. 

 

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I'm glad about the credit...but waht a stupid waste of money.

Feb 10, 2009 09:38 AM
Glen Fisher
National Property Inspections of Southern New Jersey, LLC - Oaklyn, NJ

I agree.  How can someone buy a house if they don't have a job or are unde-employed.  A large percentage of the people that have jobs are worried about making ends meet due to ever increasing health insurance and utilities.  For the real estate market to improve, the economy must substantially improve.  That means plenty of good paying jobs.  Once we see that, the market will return. 

Feb 10, 2009 09:53 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Until we see the final bill I'm not going to make any guesses about what it will contain and how it may or may not help buyers.  Everyone jumped on the $7500 tax credit would stimulate the housing market and we all quickly learned NOT!

Feb 10, 2009 10:03 AM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

I thought the $15,000 credit was supposed to be extended to everyone, not just first time buyers?

Feb 10, 2009 10:32 AM
Anonymous
www.mamlsflatfee.com

I suggest that the Federal set a special foreclosure bail-out department to directly fund the home-owner facing the financial crises rather than giving money to Bank, Banker use all the bail fund to invest to foreign  investment rather than lending it out to the people needed.

The bank DID NOT LEND the bail money out, that is draining the tax payer's money and NOT helping the foreclosure situation and overall economic. 

Feb 10, 2009 04:34 PM
#5
Anonymous
Steve Stevens/RE/MAX Choice

Check the bill again. The $15,000 has been completely removed from the package. But there will be expanded national healthcare. So now we will have the greatest number of homeless with a national health care plan. I live in Illinois and I just received a call from the republican party in Minnisota asking for money to help in the close senate seat race there. I let him have it. I informed him that I'm a REALTOR and the republicans removed the housing plan from the stimulus plan and that I will never give money to the party ever again. I may not have been too nice.

Feb 11, 2009 01:12 PM
#6