West Valley Real Estate

What are the chances of getting the first-time home buyer tax credit extended, particularly before its expiration Dec. 1?  No one can know that, of course, but what’s clear is that leadership in Congress wants it extended–and if you have the leadership on board, you’re in a stong position.  Yet with health care reform consuming Congress’ attention, even the leadership faces a challenge ensuring the tax credit gets the consideration it deserves.  After sitting down with Linda Goold, NAR’s director of tax policy, and Samuel Whitfield, an NAR legislative representative, I learned the tax credit has really been the economic recovery’s workhorse.  The IRS says 1.4 million households have used the credit.  What’s more, a number of independent looks at the credit, including one by Economy.com (owned by Moody’s) and Campbell Surveys, estimated that between 350,000 and 400,000 home purchases would not have happened without the credit.  NAR has come up with a similar estimate.  Goold and Whitfield say there’s bipartisan support for extension, and NAR is on Capitol Hill daily reminding lawmakers that the clock is running.  But it’s coming down to the wire.  (Robert Freedman, senior editor, REALTOR Magazine)  I would like to see it extended.  I would also like to see it expanded to include all home buyers rather than just first-time home buyers.   I think the economy still needs the boost.  I hope Congress doesn’t get so wrapped up with health care that they neglect other important matters.

The best available tool for sustaining the still-fragile housing market is the $8,000 homebuyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors testified at a hearing of the U.S. House Small Business Committee today (Oct.7, 2009).  The tax credit expires November 30.  NAR Regional Visce President Joseph L. Canfora also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct, which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.  “The credit is working, ” Canfor said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit make a significant dent in the housing inventory and will help to stabilize home prices.  Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas  Further, NAR has estimated that every home purchase pumps into the recovering economy about $63,000 – the equivalent of one new job added to the employment figures.  But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery. (National Association of Realtors Magazine)