Awhile
back I wrote why I thought
the $8,000 tax
credit was a bad idea. Now here we
are coming up on the November 30th deadline and
no one is sure what
December 1st holds for the housing market, but a
lot of real estate
agents are nervous and I’m one of them.
This $8,000 tax credit created a
false housing market,
including increases in buying and prices over the past couple months. But what happens when these
buyers are gone? We are
left with a completely dead real estate market. (In my opinion)
So, now that things are already screwed
up and we are possibly headed for another little crash in the real
estate
market and we are left looking for answers. I’m going to look
at our pets
for answers. If you have ever had a dog, cat, or in our case a pig, you
know
that you can’t take them away from their mothers too quickly. (That is
what
will happen on December 1st, 2009.) First time
home buyers will be
pulled out of the market way too early.
Now, what if we were to wean them away
from the tax credit like you do a pet from their mother?
Maybe offer $7,000
if close before January 1st and then lower than
amount over time
until we reach no tax credit at all. Maybe then the housing market
could slowly
drop, rather than take a complete fall on December 1st.
If by the time we have weaned the first time home buyer off the tax credit our economy hopefully will have picked up enough that regular buyers will be ready to buy again and investors will be out purchasing homes again.
Even though I disagree with the tax credit in general, we need to think of something to help the housing market continue beyond December 1st, 2009. Since they already started this mess, maybe our government should look for ways to fix it or maybe just let it take its natural course and in a couple years, it will recover on its own.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - Should the $8,000 tax credit be saved and extended?
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
What if there was a way you could search the MLS for FREE just like Realtors
Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!
Todd,
Lets just say no!
I'd suggest:
Guarantee the deducktablaty of mortgage interest for the life of the loans,
Put the deduction on the 1040 instead of form "A" extending it to the lowest income tax payers.
Bill
Todd; I'm all for extending the credit. It's been a boon to this market with a ripple effect all through the economy. A great investment in the nation.
Hi Todd... I am so torn on this issue. I agree with everything that Matt mentions in the comment above mine, but I can't help thinking that we can only "prime the pump" for so long and at some point the market needs to be self sustaining. Ugh... now I have a headache just thinking about this.
There is no way this should be extended! I think the government just needs the economy and "PRIVATE" business fix the problem and then the economy can finally get back on track.
I think it should be extended and should include all homebuyers. I believe a lot of second and third time homebuyers are out there and are waiting for them to be included in this tax break!
Todd - I like the idea of the gradual reduction to the tax credit until it is no longer available. A total cut off on Dec 1st will have an impact at a time when the market in our area has a normal lull. We need to keep that inventory moving.
Todd --- I am so torn over this issue -- one part of me wants it to be extended and the other says NO -- I think we need it to be able to keep real estate sales up.
Mama Liz
Todd --- I am so torn over this issue -- one part of me wants it to be extended and the other says NO -- I think we need it to be able to keep real estate sales up.
Mama Liz
I'm not torn. Just extend. Do not expand. This credit has been a boon -- the only thing the government has done that has really had an impact.
Some nice responses so far. I don't think naything should be done until after the November expiration date - let's get people off the fence now. Then maybe in the spring or summer or next fall put something back into place. With the pending hope of something coming, people are wanting to wait.
Todd - I have a pretty simple solution - either end it or continue it permanently. It has created a false bubble in the market that isn't based on market conditions. The one thing that creates instability in the market is the government constantly changing the rules of the game.
I know that the tax credit is good for my business... but at the same time, we have to stop sending these bills to our kids and grandkids to be paid.
Hi Todd,
I am with Dan on this one. This program is working and it needs to be extended not ended. Eventually we will see price stabilzation and that would be the time to phase it out.