Extending the $8000 home buyer tax credit deadline

According to a podcast posted by Chief Economist for the NAR, Lawrence Yun, our government should consider extending the tax credit deadline for new homebuyers.

The key is to stabilize home value prices, or federal interest rates could rise sooner and more sharply. Home value averages are at a historical low, but the Home Buyer Tax Credit has significantly impacted the market and stimulated home sales, steadily trimming away inventory. The market is moving in the right direction. Per Yun, "It would be an utter pity if the housing market, just at the cusp of a self sustaining recovery, rolls downhill again."

According to Yun, the market activities need a moderate increase to continue to regain consumer confidence. He reports that we need to extend the credit for ALL homebuyers at least into the 2nd quarter of 2010. Then the housing market will truly have a self sustaining recovery.

Yes, the price tag for extending the credit would be $10-20 billion, but it would create invaluable long term economic growth to steadily bring down the national $1.5 trillion deficit, the highest ever. Surely we can grant American homeowners this if we just granted Wall Street $700 billion, right?

Fellow REALTORS®, look for calls to action from the NAR and be ready to respond.

--Judy
www.seejudy.com
MY FEATURED LISTINGS