Is it possible/likely there will be similar tax credit given for home buying like the $8k this year? (mortgage, mortgage)
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The economy is still very sick, and there are all kinds of problems in the housing markets. The legislative leaders have shown an inability to move away from active involvement in all manner of pump priming. 2010 is an election year and congress critters will not have much time to spin a decision to leave home buyers with out a sweetener.
This is not "crystal ball", this is reading the politics...
I've heard there is something in the works for a $15k tax credit, but for every buyer, not just first time home buyers. I like it to an extent, but the other side of it is that the tax credit was to help get inventory off the market, so if you offer it to everyone, it's just going to be a wash when people sell in order to buy again.
Yea, right, the $15K tax credit has been shelved in committee since Feb. and will never see the light of day. Committees exist mainly to bury bills like this one. Also there will be no more cash giveaways--there is too much pressure on the problem of the deficit to justify it. Besides the economy is starting to recover and the party of NO will try to block anything like this. Personally I'm betting that GDP will begin to rise in the next 2 quarters and the housing prices will start to recover in many areas by spring where they haven't already recovering. They already have started back up in my area after a 50% drop from the peak of the bubble.
I'm really of two minds on this tax credit issue. While (as a REALTOR) - I like the idea of providing a means to assist getting people into the housing market who SHOULD be, but aren't able to because the environment (tightening of mortgage programs, and the loss of 100% financing opportunities) changed around them. Who has a 20% down payment anymore? You haven't needed one in the recent past so no one has it saved up. Getting people into the market to work through the inventory - and allow the sellers who are not desperate TODAY, but will be tomorrow, to get their homes SOLD...and get the system flowing again...has benefits for all.
On the other hand, I'm NOT a big fan of tax credits (last time I checked, some of that money was mine!) and fear that we are putting people back into a situation where the housing market will eventually be unstable again (assuming that this type of measure DOES lead to stability, which I question also).
One beauty of having 20% equity is that you can ride out the ever changing cycles in real estate. With 3.5% equity position in a home (FHA) - you're upside down out of the gate and it will be at least 3-5 years before you can afford to sell at a break even point. So, I'm making the case that a $15,000 credit is good for people who don't need it - but may NOT be good for people who do need it to get into a home (at least not good in the long run)...in which case, it SCARES the bejeesus out of me.
Thoughts from the gallery? This could be a great debate...because I sure don't know the right answer.
From what I hear it is very unlikely the program is extended.
Good, I think Mr. Obama has spent enough $$ for the life of all presidents already...
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