Comments on: First-Time-Home-Buyer Tax Credit Extension Info

By: Keane Ng

Keane Ng — Mon, 26 Oct 2009 19:59:18 +0000

Maybe. I think instead of increasing the credit, GIVE IT TO THE SELLER buy giving them the credit when they buy. I think that will do the trick.

Watch this video on YouTube

http://www.youtube.com/watch?v=aEaoIgK5xac

Listen to Spencer’s comments about the “shadow inventory” and what it will do to our growth. There is a ton of houses not currently for sale that will come on the market when the market starts to rebound. If a credit was done in a way to motivate these sellers who are often buyers/sellers, we’ll see more inventory come on the market and be priced more aggressively to move. You would see more buy/sell transactions than now instead of just first time home buyers.

Just my 2 cents

By: Carol

Carol — Mon, 26 Oct 2009 19:56:06 +0000

I understand your position. I do believe that if you tap dance over something like this that is intended to MOVE the market, you may get little movement and have wasted a lot of taxpayer money. If we are going to have another credit, it needs to appeal to a different demographic and it needs to be bold. Regarding the amount of the credit, the historical date we have to date reflects the opinions of mostly first-time homebuyers, who, in my opinion, were probably going to buy their first home regardless of a credit. The harder nut to crack is getting that homebuyer who already owns a home out in the market for another home. Given that purchase prices for these individuals will be significantly higher than that of the first-time homebuyer, it will take more incentive to bring them to the table. The larger the tax credit, the more likely the seller is willing to reduce their asking price and get some inventory moving. Thoughts?

By: Keane Ng

Keane Ng — Mon, 26 Oct 2009 19:44:24 +0000

I have mixed feelings about extending it or expanding the amount. For my personal business, I have no doubt it would be good. However, we really have to gauge how much it will INCREASE activity.

I think the size of the credit is fine. I find more people complaining that they don’t qualify for the credit due to their income being too high or not getting the full credit because their tax bill isn’t $8,000 a year or higher.

I’m not saying this is what we SHOULD do, but I think here are a few interesting things that may help

1.) Raise income limits by $25k for first time buyers
2.) Allow the credit to be split over two years so borrowers who have $4k tax bills can still get the full credit
3.) Open it up to existing homeowners (I think this would make the biggest impact because it will help move that shadow inventory Spencer talks about on the linked video)
4.) Of course, extend it through some part of 2010. Preferrably through the buying season.

I’m not a big fan of increasing the amount unless it does get spread over 2 years instead of one. What do you guys think?

By: Carol

Carol — Mon, 26 Oct 2009 19:38:24 +0000

The credit has been relatively successful in encouraging first-time homebuyers to purchase a home prior to November 30 in Atlanta. We’ve got to keep the real estate machine moving and should seriously consider opening credit up to ALL homebuyers. By doing that, we will need to increase the amount of the credit if it is going to encourage higher income individuals to sell their existing home and buy new. Sen. Isaakson’s proposal makes sense and will probably garner more attention now since the first-time homebuyer credit has been so well received.

By: Carl Self

Carl Self — Mon, 26 Oct 2009 17:54:43 +0000

We really need the extension to keep the housing market moving which is the biggest reason for the economic downturn. If we can get the extension just through June of 2010 we would have enough activity to possibly spark the economy forward. Any loss of the credit and we are back to square one and maybe even digress to the middle of 2008. Carl The Seattle First Time Home Buyer

By: Keane Ng

Keane Ng — Mon, 26 Oct 2009 16:21:25 +0000

Yes, there is pressure from both sides to either extend, increase or end the tax credit.

The tale telling news to me is the spike in existing home sales in September. Usually September is a declining month compared to the summer months, yet we saw a huge increase in closings. Keep in mind that those figures could’ve been higher if Taylor Bean and Whitaker didn’t close in August.

By: Internet Banking

Internet Banking — Mon, 26 Oct 2009 10:06:32 +0000

However, many had called for the Chancellor to go farther, by making all first time buyers exempt from the tax. Internet Banking