THE TAX CREDIT ! NEEDS TO BE IN PLACE FOR ANOTHER SIX MONTHS

THE TAX CREDIT ! NEEDS TO BE IN PLACE FOR ANOTHER SIX MONTHS

AT LEAST !

(Story by Philip Losey Senior Principal Broker ERA Home Towne Realty and Acution)

This recession is having a terrible effect on the housing industry. There are still lots of inventory not sold. Prices in all markets have plummeted. Many realtors have been forced from the industry, or have taken part-time jobs. Most of the small mortgage brokerages that served people who needed a little boost in buying or credit counseling are gone. Economists report that there are thousands more foreclosures, either residential or commercial, yet to be dropped on the market.

The most unjust act of the "Great Recession" is that it isn't the average realtor's fault that it happened, yet it started with a housing bubble. Yes, we realtors received some deals, we probably wouldn't have had if it had not been for the bubble. But most of us can't even spell derivatives, let alone have any part in the buying or selling of them. It is criminal that the people who perpetrated this recession have gotten off scot-free. Indeed, I have read that they received bonuses, because they are the only ones smart enough or connected enough to do their jobs.

So, the government came along to pick up the pieces. They bailed out the perpetrators of the recession first. Yes, most of the big banks and big financial institutions are solvent again. They supposedly are being regulated -ah really-but that's another story. Other big, key industries have received aid and are doing better-automobiles are a prime example.

The real estate industry, in general, received a surge from the tax credit. Most of the real estate companies in my area did well during the first quarter of 2010. A lot of buyers took advantage of the $8,000 tax credit. Many companies had a strong surge up until about June-when the tax credit ended.

Since June, looking at the statistics, and just talking to realtors, the market has been spotty at best. I think the government made a major mistake not keeping the credit going until the end of the year. Realtors deserve the same consideration as banks and automobile manufacturers. Our bailout is not complete. Housing is a fundamental, building block of our society. I understand that unemployment is standing at over 9%--probably much higher than that. The housing industry is fundamental to the recovery of this economy. New home building is practically at a standstill in my area. There are hundreds of thousands of construction workers setting idle, let alone all the subsidiary industries related to housing.

Finally, the idea of every American having a home is not wrong. Yes, poor credit risks and defaults are attributed to helping cause the crisis, but the playing of financial games with these poor credit risks are the real culprit. Let's get people working and they can pay for homes. We need more jobs, more opportunities.

Help us realtors put people in homes-reinstate the $8,000 tax credit for at least another 6 months.