$15,000 Tax credit---will this work?

By
Real Estate Agent with Keller Williams Cornerstone Realty

The Senate has truly attempted to bring a kick into our somewhat slower real estate market.

This tax credit is not limited to first time home buyers, but all buyers in 2009.  It is said to affect at least 500,000 buyers which should stimulate the market everywhere.  It is a very powerful incentive and should get things going all around the country.  As we have seen, the slowdown in the housing market has greatly affected all industries as it truly has become a trickle down throughout the economy.  This will be a tax credit available to all purchasers of a principle residence for one year after its date of enactment.  This would not need to be repaid and buyers could claim it against their 2008 and 2009 tax returns. 

The purpose of this credit is hope to increase real estate sales, create jobs and create consumer confidence in the real estate market.

Crystal McCall

www.CrystalMcCall.com

Comments (4)

Paul McDuell
Realty Benefit - Rancho Santa Margarita, CA

Argh, I just replied to your blog and wam, lost my interenet connection, I hate when that happens.

So, here I go again...

Let me start by saying $15K is a LOT of money in any market. It's going to help home sales, more in some areas than others.

I would like to see the credit tied to home prices for a particular area/city.

In our area, you need to spend close to $300K to buy a nice 2 bedroom condo. A starter house is going to cost you $400 to $550K.

If the credit were 10% to 20% of the average selling price, of say the lower 1/3 of recent home sales, that would be much better. I know, sounds selfish, but hey, homes here are expensive here.

I'm sure this could be done, and after all, FHA loan limits have been based on local pricing.

Paul

 

Feb 11, 2009 04:52 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I would like to see the offer extended to all homeowners, no matter when they bought, only tie it into paying on the home , only.  It would give equity which hopefully would give homeowners extra incentive to try to keep the home and paydown LTV so PMI could be paid off early!

Feb 11, 2009 05:16 AM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS

Crystal, I think it will be important whether the tax credit is actually a loan, or whether it's a real credit.

Feb 11, 2009 05:28 AM
Crystal McCall
Keller Williams Cornerstone Realty - Ocala, FL
CDPE,CIAS,ABR,CRS,CRB,GRI,CIPS

The new credit is not a loan but an actual CREDIT.  Unfortunately, in higher priced markets $ 15,000 is not a lot.  Our market prices have dropped under $ 100K and this is a great difference for many buyers.

Feb 11, 2009 05:54 AM