The U.S. Senate is seriously considering extending the $8,000 Tax Credit into 2010. Bill sponsor Josh Isakson is doing his best to patrol the Senate floor and generate support for the bill. The program boosted home sales by more than 1 million and it looks as though this program could really provide the extra push the housing market needs as well as the economy.
REALTORS, bankers, and home builders are all in support of this bill and even hope that there will be more to it than there is currently. All three would like to see the program opened up to all buyers and even extended to investors. The three have joined together and are launching a campaign in support of the extension with the tag line: "Don't Let America's Real Estate Recovery Expire."
President Barack Obama has his economic team researching the impact of the tax credit. His concern is the effect it has on new home sales. The larger concern should be what the effect on housing will be if the extension is not granted as we head into, traditionally, the slower months for real estate sales. Could inaction extend the recession? Many economists believe so.
The Tax Credit officially expires on November 30, 2009. I would like to think that the federal government will do what is in the best interest of home buyers and the economy but at this point, I just hope for some action instead of more research.
I Net Realty Group, Inc. - Hudson, FL
All we can do is hope they extend it and keep the momentum going so that we can hopefully get and keep the real estate market on the move.
Sep 17, 2009 08:53 AM
STL Buy & Sell Real Estate Services - Saint Peters, MO
I Net Realty Group, Inc.,
Thanks for the comment! I do hope they find a way to continue the momentum!
Sep 22, 2009 08:41 AM
STL Buy & Sell Real Estate Services - Saint Peters, MO
Billy,
Thanks for the comment! I can understand why buyers in your position would feel the way you do. However, there are many areas where there are programs that require no money down. Programs like MHDC, USDA Rural Development, NSP, and others like them allow buyers to purchase homes through 100% financing. The programs are intended to help buyers purchase homes through reliable financing with low interest rates.
The tax credit is meant to stimulate the housing market and not just those who normally could not afford to buy a home. Missouri is only one of a few states that will allow the buyer(s) to use the tax credit as a down payment at closing. This makes it appealing to buy homes for more people but also injects money into the local economies as well as the state and federal economy. I feel that the responsibility lies with the lenders, underwriters, appraisers, and REALTORS to know their clients and make ETHICAL decisions that will provide homeownership for those who are able, willing, and credible buyers! Not everyone is resonsible enough to own a home. Thank you again for your comment! I appreciate you reading my blog and I hope you will continue to.
Sep 22, 2009 08:49 AM
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