$8000 Tax Credit, Extend it to Everyone & Get The Show on the Road!

We were all excited when the federal government announced in February that first time home buyer's were going to receive a true tax credit for any primary residence purchased before December. The tax credit was an extension of a previous $8,000 tax credit from last year. The difference being that this one did not need to be repaid. The tax credit has been beneficial in boosting first time home buyers to get off the fence and make a purchase. More however could have been done.

When the tax credit was being discussed in congress, there were several versions of the bill that would have allowed for a credit as high as $15,000, and have the credit available to all home buyers not just first time home buyers. At the time the government that such a move was too aggressive and would lead to an over correction in the housing market.

Now it is several months later and the recession is being more tenacious then expected. The housing market has seen some improvement but nothing like what was hoped. That result isn't surprising considering that first time home buyers make up only about a quarter of all home purchases on average. So what about the other 3/4?

As we speak, there are several (four at last count) versions of a bill circulating around congress looking for support. Each is in favor of extending the tax credit to all home buyers and extending the deadline to the middle if not the end of next year. The politics behind the process is slowing the process down. Many senators see such a bill as a being a big boost to the economy and a great item to get your name on for future political aspirations. As such many are unwilling to allow their name to be second or third on the bill. Hence the four bills floating around congress.

The good news is that there seems to be widespread support for extending the current $8,000 first time home buyer credit beyond the current December deadline, and also a lot of support for extending the credit to all home buyers. They may also increase the amount of the credit but none of the bills currently in formation include such a provision.

Stay tuned. I'll keep you posted. Hopefully by the end of summer we will have a broader bill. I would be really excited is we did. I can't think of much that would help stimulate the housing market more then free money from the government. After seeing the effect the bill has had on first time home buyers, one aimed at all home buyers would be a welcome sight.

Melissa Polce, Broker Realtor

www.MyRelocation2Charlotte www.ExclusiveHomesofCharlotte.com