Should the $8,000 tax credit be extended for first time buyers?

By
Real Estate Agent with eXp Realty

The simple answer is "of course it should"!  When existing home owners list their property for sale to upgrade or relocate, they add inventory to the saturated housing market.  However, when a renter purchases a home, they deplete inventory from the saturated market.  Over 300,000 new home buyers have benefited from this tax credit, which has helped stabilize home values and market saturation.  Additionally, there are loan programs available for these buyers that don't exist for existing home owners.  These programs will continue to help sell HUD owned properties, and jump-start the economic future of Fannie Mae and Freddie Mac.  I don't think the majority of qualified buyers knew the tax credit approved by the Reinvestment Act of 2009 was a gift by the government that never had to be repaid. So many buyers thought the money was still a short-term loan, like the 2008 Bush plan.  If the tax credit is extended, I predict the housing market will rise from the ruins and stabilize in the next 12 - 18 months.  Let's keep our fingers crossed and hope Congress approves the extension we so desperately need to sell houses.

Posted by

                                                                                                           

Lisa Belcher, Realtor and CEO
The Lisa Belcher Group
Your Metro to Coast Real Estate Connection
843.353.1424 Phone

 

 

Comments (3)

Gaye Granice
Robert Defalco Realty - Staten Island, NY
Associate Broker

Hopefully, this extension will be passed soon.  It's a good tool for us to reach out to first time homebuyers.

Oct 23, 2009 06:11 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Lisa:  Yes, the first time buyer $8,000 tax credit program SHOULD be extended.  But NOT until December 1, 2009.  If we extend it before that, it will just take the folks that are just now getting off the fence and buying... and put them back UP on that fence once again.

Oct 23, 2009 06:16 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Lisa:  I see you are relatively new to Active Rain... so Welcome to Active Rain !  I'm sorry my welcome is a little late... LOL.  Active Rain is such a great place to learn, to share, and to help increase your business.

Oct 23, 2009 06:17 AM