Senate Again Unanimously Approves Isakson Amendment to Stimulate Housing Market

By
Mortgage and Lending with John Tuggle, Senior Mortgage Loan Originator, Envoy Mortgage, Ltd. NMLS# 211187

On Wednesday, the Senate unanimously approved my amendment to the Fiscal Year 2010 Budget Resolution that seeks to stimulate the nation's declining housing market by providing for a $15,000 tax credit to individuals who purchase a home in the next year.   My amendment creates a deficit-neutral reserve fund for providing a nonrefundable federal income tax credit for the purchase of a principal residence during a one-year period.

 It would also ensure that there is room available in the Fiscal Year 2010 budget for a homebuyer tax credit to be passed at a later date. I plan to introduce my $15,000 tax credit as a stand-alone bill in the next few weeks.

   Our economic crisis started with housing, and our economy will continue to suffer unless we do something now to immediately fix the housing problem.  I'm pleased my colleagues in the Senate understand the importance of creating targeted incentives that will encourage Americans to buy homes again and implement the first step in my four-point plan to economic recovery

Comments (5)

Denise Gray
Realty World Alliance - Wichita, KS
Realtor SRES, Wichita Kansas Homes

My thought is people would put off purchasing a home until 2010 thus causing more issues this year.

Apr 04, 2009 08:19 AM
John F Tuggle
John Tuggle, Senior Mortgage Loan Originator, Envoy Mortgage, Ltd. - Columbus, GA
Certified VA Expert Renovation Program Specialist

Denise,y

I think that if this bill makes it all the way it won't be until the latter part of the year.  They are just beginning the process and remember the current credit we have (8,000) expires at the end of November.  Also, if you recall, the current credit we have started in the teens also.  I feel pretty confident that if it passes at all it will be modified.  One other point to think about is your buyers may want to take what is a sure thing now combined with historically low interest rates instead of opting for a maybe later combined with what everyone agrees will be inflationary interest rates due to to the government currently printing money to artificially lower rates.

Again, this is all conjecture so nobody really knows what the end result will be.

Thanks for all you do as a Realtor.  No matter what happens, Realtors will be the largest part of the recovery equation.

John Tuggle

Apr 04, 2009 08:26 AM
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

I must agree with Denise, if this is approved, many will wait as the credit is almost twice as much as the current.  The only kicker would be that rates could very well go up by then, thus negating the increase in the long term.

Apr 04, 2009 09:51 AM
John F Tuggle
John Tuggle, Senior Mortgage Loan Originator, Envoy Mortgage, Ltd. - Columbus, GA
Certified VA Expert Renovation Program Specialist

I hope that whatever happens will be for all of our betterment.  I do know one certainty in Real Estate from my 25 years in this business.  The sure fire way to stimulate home sales is Jobs, Jobs, Jobs.  I have seen very brisk markets with rates over 10% and I have seen very slow markets when rates are at historic lows (feels like we are looking in the mirror).

Thanks again for reading my blog and please feel free to call me if you need anything.  I do a good amount of business in Clarkesville and surrounding area.  Great place,

John Tuggle

 

Apr 04, 2009 11:43 AM
Michael Scott
Metro Brokeers/GMAC Real Estate - Dallas, GA

I had the pleasure of having breakfast with Senator Isakson yesterday morning when he came to an event sponsored by my board, the Paulding Board of REALTORS. His comments on the recovery of the real estate market were mostly upbeat. We do face a major challenge in the Congress with the House leadership. It is going to take a major effort from the grassroots organizations to get any movement there.

Having been a REALTOR himself, the Senator shared his experience of the 4 major down real estate markets in his working life. When the market tanked in 1974 we had 2 to 3 times the months supply of new homes on the market as we do today, and we recovered from that and were stronger. Each time this has happened we recover stronger and we will this time also.

The other good news he shared with us was the recent change in one of the accounting rules that have hendered banks from lending. There is also another accounting rule on the how real estate is valued by banks the is expected to change in the next couple of weeks. These 2 changes should help the banks ability to lend and free capital which under the current rules must be held in reserve.

When I left the meeting I had a new attitude and outlook on just how we might get through the next few months. I already see improvment in my market. His message to us was to continue to work hard, stay positive, and stay focused. We are on the rise again.

Apr 14, 2009 09:56 PM