The pressure is increasing on Congress to renew the homebuyer tax credits for a third time.
The first $7,500 tax credit was passed in 2008 and required first-time buyers to repay the credit over 15 years. A few months later in 2009, Congress expanded the credit to a maximum of $8,000 that didn’t have to be paid back.
At the end of last year, Congress extended the benefit again until April 30 with an extra two months on top of that to close. A new credit of $6,500 was added for move-up buyers, too.
Now representatives of the housing industry are lobbying for another extension. Some experts, including Mark Zandi, chief economist at Moody’s Economy.com, who supported the earlier credits, think the time has come to let it go.
“It’s worn out its benefit,” he says. “If you extend it again, it isn’t going to do much, and what you’re doing is providing a tax break to folks who bought anyway.”
Source: The Wall Street Journal, Nick Timiraos (02/22/2010)
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Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent
Good information...I hope they extend for at least a bit longer in hopes of really getting this market back on its feet.
Feb 22, 2010 07:53 AM
Guild Mortgage Company and Oregon Homes For Heroes - Salem, OR
Personally I would like to see it go a little longer just because it is for good business but at some point we need to move ahead with help.
Feb 22, 2010 07:58 AM
First World Mortgage - West Hartford, CT
I honestly think that the tax credit was a dumb idea. It might have stimulated the market short term, however, how much more money can our gov't print that have some serious long term side effects on the financial market.
Feb 22, 2010 08:00 AM
Guild Mortgage Company and Oregon Homes For Heroes - Salem, OR
First Choice Loan Services NMLS#210764 - San Antonio, TX
Mortgage Loan Originator
I wish the Tax Credit would be extended but this time allow everyone to get the benefits but at a lower tax credit amount. For example, $3,000.00. I have several buyers who do not qualify with the current move up ($6,500.00) tax credit because of the constraints of having to live in their current home for a set time. With having every buyer qualified without the constraints of how long they have owned their existing home can help with the ones that need to downsize or want to take advantage of some of the great deals on the market right now!! With this in play, I see more action taking place in the real estate market!!!
Feb 22, 2010 08:08 AM
Palatium Auctions Moving, Downsizing, Liquidation Auctions, Estate Sales. 314-690-1978 Certified Personal Property A... - Town and Country, MO
St Louis MO Auctioneer, Estate Appraiser & Auction
Interesting read on the credit...the market needs to adjust itself and it will. Rather see the effort put into job creation.
Feb 22, 2010 08:09 AM
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