So Much For That $15,000 Homebuyer Credit
Well, it was a nice idea while it lasted. Yesterday, lawmakers in Congress reached a swift compromise on a $790 billion stimulus package but the proposed $15,000 credit for new home purchases has been removed from the bill in an effort to reduce its cost. The compromised bill whacks an item that’s generated a lot of excitement in home-selling circles in recent days.
The measure would have cost an estimated $35 billion. Realtors such as myself and home-builders had given it their full-throated support calling it the the most effective way to stop the downward spiral of home prices. Many of us in the Raleigh real estate general brokerage business have potential buyers who have been waiting to see whether the credit went through before purchasing a home.
While some economists were skeptical, saying it would artificially prop up the housing industry and do little to help people most in need, the majority of us have said the incentive would be a strong boon to the housing market. What was proposed and cut from the stimulus package yesterday, would have been a much more effective measure than the $7,500 credit enacted last year, which is required to be paid back in subsequent tax years. The $15,000 credit would not have had to be paid back, and would have been effective for one year after the bill was enacted.
Either way, it looks like history. While many of us are disappointed at the outcome, there are many excellent reasons to purchase now rather than wait. Many homes on the market have cut their list prices, there is a large number of listings to choose from and interest rates are at historically low levels. Contact us at www.HomeSearchRALEIGH.com and we can begin your search online. Also visit www.FreemanDavisHomeTeam.com to get started!
What do you think about this outcome? Leave your comments below!