Tax Credit Increase, Again?

By
Real Estate Agent with Realty Professionals, Inc.

While on Twitter this morning, I ran across a Tweet about the Senate submitting another request to almost double the tax credit and make it available to ALL home buyers.  Here is an article from Bloomberg.com http://www.bloomberg.com/apps/news?pid=20601087&sid=aI3l8W6tflrg

Do you think this will make a difference in your area?

 My name is Larry DeGroat and I am a Realtor at Realty Professionals, Inc. in Searcy, Arkansas 72143 and I sell new homes, existing homes, commercial property, farms and land as well as manage and own rental properties. If you are looking for real estate for an investment or a home, I will be glad to assist you! You can call my personal cell number at 501-278-7659 or e-mail me at Larry@Searcy4Sale.com. Visit my website at http://www.searcy4sale.com if you are looking for Searcy homes for sale or other areas.

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Rainmaker
1,942,350
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Had seen that...will be following and good news to spark and help home buyers.

Jun 12, 2009 02:37 AM #1
Rainmaker
276,549
Eric Egeland
RE/MAX SUBURBAN - Libertyville, IL
SFR, e-PRO, CDPE

I saw this too....I think it will definetly help the Real Estate market, but I don't know how practical it is on the governments end, they can only hand out so much money

Jun 12, 2009 02:44 AM #2
Rainer
238,917
Jason Potrzeba
Webster Bank - Providence, RI
Mortgage Banking Officer

I worry what effect this will have on buyers in the market today or those buyers who are about to enter the market. Similar to the refi client who was holding off for the rates to hit 4%, will this suggestion of a 15k tax credit keep buyers on the sideline waiting to see if this in fact becomes a reality...?

Also, if a suggestion like this takes enough people out of the market and then the market recovery begins to stall or even worse decline further do to this suggestion...what happens? Is the gov't now forced to pass a more aggressive tax credit that the need for was generated by this move today...

Jun 12, 2009 03:04 AM #3
Rainmaker
522,122
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

There are a lot of people with good credit,  good income who are trapped in a home that their family has outgrown.  They have little or no equity due to the decreaase in values, and they are unable to make a move.  They can't save money rapidly enough to offset the decrease in their home value, and to build up a downpayment fund too.

A tax credit may make the difference in helping them with sales expenses and afford to sell their home.  To be effective, however, any expanded tax credit needs to have the ability to be monetized.  It needs to be usable as available cash to close on a sale, and/or as part of a required downpayment on the new home.

I think the program likely would effect reduction of real estate inventory sufficiently to justify the cost.  If real estate got us into this recession, it is probably going to have to get us out.

Jun 14, 2009 08:30 AM #4
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Larry DeGroat

ABR, CRS, e-PRO, GRI in Searcy
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