No question about it, the Federal Tax Credit for First Time Home Buyers has most definitely stimulated the housing economy. The debate over whether to have a Federal tax credit brought up discussion about who should benefit. Should it be first time home buyers only? What should be the monetary limit on the credit?
After debate, the $8000 Credit went into effect, only for 1st time home buyers. It’s still scheduled to expire on November 30th (meaning you have to take possession of a new house by that date). Congress is considering extending it. The debate ensues. Should it become more far reaching and apply to anyone buying a home, not just first timers? Should the credit be raised to $15k?
This Wall Street Journal blog post by Nick Timiraos tackles the issue. The article points out that we need to pay for some high profile issues like health care, so that might keep Congress from changing the boundaries, or even extending it. The blog post links to a few other WSJ articles written on the topic, which is why I’m featuring it here.
Harry Reid is the Senate Majority Leader. He seems to think the credit will be extended. This article in The Las Vegas Sun quotes him as saying that changing the parameters might be harder to do.
Most of the articles I read talk about the real estate lobbyand how my industry is pushing hard for it. Well yeah. Frankly, it seems like a no brainer to me, since it’s a definite stimulus, proven track record, something you can’t say for sure about bank bailouts. Per usual, Congress is trying to make it difficult by introducing one Bill after another with changes, without changes. The usual posturing. This wheel is not broken so why not keep it like it is, no changes, for another year? Maybe Congress is trying to avoid dealing with health care and other complex issues. This is a no brainer. Extend it for 12 months and move on. Just my opinion. What do you think? Peace Out – 3C
2 responses so far ↓
1 derek arnold // Sep 23, 2009 at 9:13 pm
I have never really considered home ownership but this credit makes it almost impossible not to look into. If only I knew someone that was a realtor…
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2 Carole Cohen // Sep 23, 2009 at 9:32 pm
something tells me we could find you a Realtor® lol.
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