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$15,000 Tax credit---will this work?

The Senate has truly attempted to bring a kick into our somewhat slower real estate market.

This tax credit is not limited to first time home buyers, but all buyers in 2009. It is said to affect at least 500,000 buyers which should stimulate the market everywhere. It is a very powerful incentive and should get things going all around the country. As we have seen, the slowdown in the housing market has greatly affected all industries as it truly has become a trickle down throughout the economy. This will be a tax credit available to all purchasers of a principle residence for one year after its date of enactment. This would not need to be repaid and buyers could claim it against their 2008 and 2009 tax returns.

The purpose of this credit is hope to increase real estate sales, create jobs and create consumer confidence in the real estate market.

Crystal McCall

www.CrystalMcCall.com

Posted by Crystal McCall ABR,CRS,CRB,GRI,SRES,CIPS on 02/11/2009 12:25 PM

Comments (4)

Tax Credit in the Home Buying Channel

tax credit 2009, home buyers advice, home buyers, home purchase, home market advice

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4 Comments on $15,000 Tax credit---will this work?

FEB

Argh, I just replied to your blog and wam, lost my interenet connection, I hate when that happens.

So, here I go again...

Let me start by saying $15K is a LOT of money in any market. It's going to help home sales, more in some areas than others.

I would like to see the credit tied to home prices for a particular area/city.

In our area, you need to spend close to $300K to buy a nice 2 bedroom condo. A starter house is going to cost you $400 to $550K.

If the credit were 10% to 20% of the average selling price, of say the lower 1/3 of recent home sales, that would be much better. I know, sounds selfish, but hey, homes here are expensive here.

I'm sure this could be done, and after all, FHA loan limits have been based on local pricing.

Paul

I would like to see the offer extended to all homeowners, no matter when they bought, only tie it into paying on the home , only. It would give equity which hopefully would give homeowners extra incentive to try to keep the home and paydown LTV so PMI could be paid off early!

Crystal, I think it will be important whether the tax credit is actually a loan, or whether it's a real credit.

The new credit is not a loan but an actual CREDIT. Unfortunately, in higher priced markets $ 15,000 is not a lot. Our market prices have dropped under $ 100K and this is a great difference for many buyers.

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