Home : Blogs : Diane Testa : Diane's Blog

Did they yank the rug out from under us?

The plan for the stimulus bill has changed and the government has decided to remove the proposed $15,000 tax credit for home buyers. I agree that this was an idea that sparked some interest in buying a home for some, but would this have been the thing that would have knocked people off the fence and encouraged them to buy now? I don't really understand how the government could tease us in this way, and ignor an area where there is such a need for help.

Is this change in the plan going to destroy the "Hope" that everyone had in this troubled economy? Are we going to find our way out of this recession with the other parts of this plan? Or are we in for a long road ahead before we see our economy turn around? Is it so important to encourage people to buy homes by offering a tax credit? Or are we at the bottom of the market, about to see appreciation once again?

Throwing money at the problem did not work back in the 1930's during the Roosevelt administration. It took 10 years and WWII for our economy to improve then, so how is this different? There are tons of people out there with tons of ideas (and fears) about what is going to happen... what are your thoughts?

It is a fact that people are still buying houses, they are getting the most fantastic deals, and it is a great time to own real estate. Historically, Real Estate has been the leading wealth generator. So, why all this doom and gloom out there? I think to change things.... the biggest thing many need to change is their attitude and their outlook. I believe we get what we look for, so if we look for failure, we will get it. I am looking for the recovery and I focus on all the positive things in my life. There are plenty of people out there that want to and need to find a house to live in... right now, and the agent that they want to work with is not one that is ready to throw in the towel... that's for sure!

So, did they yank the rug out from under our feet? I don't believe that they did. I believe our success in this industry is based on our attitude. If we believe that we will do well, we will, and we will do whatever it takes to do so. So keep your attitude positive, and keep your client's interests at heart and you will be sucessful!

Posted by Diane Testa on 02/12/2009 08:10 AM

Comments (8)

stimulus plan, real estate, tax credit, market conditions

Post is included in group: The Ninety-ninth Percentile
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: Realtors®
Post is included in group: New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
Post is included in group: Dedicated Bloggers

8 Comments on Did they yank the rug out from under us?

FEB

I think they were able to get NAR on board for the plan and then they gave us the finger.

I don't think anyone including Geithner knows what to do. Whether it's buying bad debt or a housing stimulus our government is continuing to fall short.

our government is doing the best they can with what they have been given. it is just a bad situation all around . this country needs healing and it is going to take time. be of good cheer , stay positive..

Diane - I guess it just shows that they really don't know what to do...They keep changing their minds...

David, It is true that money has a big influence in Washington, but I have to say that I think we are in for a challange no matter what they include in the stimulus package.

Integrity Mortgage, It is a difficult situation that even the best advisors are struggling with.

Benita, Staying positive is vital!! I have a positive outlook overall, I just wish more people did!!

Debi, Even the most educated financial advisors are bewildered by this situation. Let's hope that they think with their hearts and minds and not their pockets.

FEB

I agree on the attitude part. I can't imagine how many people are waiting for 4.5%, or for values to go down more. MANY will miss out. You don't however see investors sitting around doing nothing.

Hi Diana - I don't see much in the bill that will stimulate the housing industry. The credit would have increased our population of buyers (providing they could qualify for a loan) and what's left in the bill as a "first time home buyer" incentive may not have much of an impact. First time home buyers may not have the equity they need to purchase a home given more strict lending standards. I guess we'll have to wait an see.

Steve, That's right, many people wait until they see clear signs that the market is changed, and by that time, it's too late. It happens in the stock market many times a day, I am sure we will see a lot of it in the Real Estate market as well.

Jon, I agree that the credit would have helped to motivate buyers, but the first time home buyers buying homes will help those people move up, and others move up from there. I think the $8,000 credit for first time homebuyers will help some. No matter what they do in Washington, the entire attitude of our population has to change before we find the economy improve. Keep a positive attitude!! :)

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?