Why I support extending and expanding the Home Buyer Tax Credit

By
Real Estate Agent with Coldwell Banker Schmidt Realtors

First, this is a tax credit, not a cash payment. It's unlike a bailout to a bank, or even Cash for Clunkers where we as citizens wrote checks to take serviceable vehicles off the road. By taking part, buyers are keeping tax dollars out of Treasury hands, and I like that. A small distinction, I know, as the money will be made up somewhere.

Second, it's estimated the median home sale generates about $63,000 of economic impact via ancillary services, purchases by buyer and seller, etc. That's a powerful engine to drive this recovery.


Third, first time buyers have been given the opportunity to participate, and it's made a difference in clearing inventory (which in turn can hasten the return to work for contractors, etc.) Broadening this with reasonable limits can allow others to take part in the recovery.

Fourth, lending requirements are so tight that we're not putting bad loans in the system. In fact we're keeping some very good buyers out, and keeping people who would be purchasing from doing so. This legislation can help to create a bit more balance in the market.

BUT WE DO NEED TO WEAN OURSELVES FROM THE GOVERNMENT TEAT!

Comments (1)

Chuck Gollay
Exit Realty Paramount - Traverse City, MI

Good post, Matt.  I think the first go-round was well-conceived, and the second go-round too.  But i think it's time to end the tax credit, and then let us re-appraise our local markets.  It will be curious to see how our real estate market responds after May 1st, when the credits expire. 

Apr 20, 2010 02:35 AM