Today the senate approved an addition to the stimulus package that will give buyers up to $15,000 tax credit if they purchase within one year. This is a very interesting concept and if marketed correctly will help to stabilize housing. The problem we have today is not that there is a lack of buyers - it is there is a lack of confidence. Buyers are asking the age old question - what if the market goes down? But this provision in the stimulus package is the answer to that question. Buy purchasing this year, there will be a built-in 10% price stabilizer. If the housing market goes down another 10% (which I doubt it will at this point) the loss is covered already. If the market doesn't go down, then the buyer realized a 10% savings by purchasing this year.
We'll see if it gets approved. My hope is that it applies to ALL homes purchased this year - no matter if they are first time home buyers, second homes, investors - doesn't matter. As long as the buyers are credit qualified then they should receive the tax credit. This will induce purchasing because it removes the uncertainty.
Jeff Martel | Broker / Marketing Director
208.327.2103 Voice | 208.327.2104 Fax
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