DISQUS

debbiekirklandrealtor · 4 weeks ago

Beaurocrats. What more information do they need.. this is the one are that they do not need further research. Realtors have supplied them with every fact and figure they could ever need. It's working,.. now sign the thing and get to work on health care, that should keep them busy!

Benjamin Ficker · 4 weeks ago

From the same Bloomberg Article via CalculatedRisk:
UPDATE: I was told this is a done deal, but I haven't seen an announcement yet - so it might still change. The tax credit was expanded to move-up and higher income buyers. The amount of the credit was reduced to a maximum of $7,290.
Income eligibility for first-time home buyers stays at $75,000 for individuals and $150,000 for couples.
For move-up buyers, income eligibility is $125,000 for individuals and $250,000 for couples.
There is a minimum 5 year residency requirement in their current home for move-up home buyers.
The tax credit is the lesser of $7,290 or 10% of the purchase price.
The credit runs from Dec. 1, 2009 to April 30, 2010, with an additional 60 day period to close escrow. (So end of April to sign contract, end of June to close escrow)
Expect bill to be signed by Friday.

I had not heard that the credit would be reduced. I guess thats a step in the right direction...

Jay Thompson · 4 weeks ago

Hey Benjamin -

After watching most of the afternoon, I just shut off CSPAN2 when the Senate adjourned for the evening. Nothing was voted on today (other than some procedural stuff). They are to take up debate tomorrow morning on the unemployment insurance extension which from everything I've read, is where an amendment to extend the home buyer tax credit will be attached.

There are numerous reports of the changes you mentioned, but there are also numerous reports that Sen Isakson is still pushing for additional considerations and Reid is still working his "phase out" proposal.

The bottom line is, until the Senate actually votes on and passes legislation and sends it to the House for consideration, anything can happen. And of course the House can also change the wording and send it back to a joint Compromise Committee. Look at all the changes that happened in the process to the current tax credit...

It's getting much closer, but I sure wouldn't call it a done deal.

As for the credit being reduced, Going from $8,000 to $7,290 isn't really much of a reduction. But I suppose it's better than nothing.

And for the record, I can't recommend to ANYONE that they should watch four hours of CSPAN Senate coverage. I think I'd rather poke a stick in my eye.

Tony Pomykala · 4 weeks ago

What constitutes a "Move-Up" buyer? Someone who bought a $350k home in 2005 finds their home worth only $200k now, and wants to buy a currently valued $300k home. They are purchasing a home at less than what they paid for their last home, so... will they qualify?

Jay Thompson · 3 weeks ago

Tony - so far "move up" has not been well defined. Several things I saw today said it was simply someone who has owned a home for five consecutive years out of the past eight years.

This is one of those things we probably won't really understand until after the bill is passed and the definition is clarified. Until then, it's all speculation.

Benjamin Ficker · 4 weeks ago

Thanks for the clarification. I guess like any real estate deal, it's not done until the checks are cashed...

Brian @ Blythewood Real Estate · 4 weeks ago

I wonder if extending the deadline means the economy is still in turmoil. In my area I see a bunch of developers having to hold high end properties til the point that they lose everything and are back to square 1. An increase, rather than a decrease, would seem to be the best strategy.

Benjamin Ficker · 4 weeks ago

The problem with increasing (or having the credit in general) is that it artificially props up prices. That home worth $100k is actually only worth $92k. Increasing the credit will only delay the inevitable.

Best Savings Account Rates · 4 weeks ago

I don't know for what they are thinking so much. It is working now and with extension, some good results would come out for sure. Let this credit benefit to extend for some more time until our economy gets normal. How long they will manage to adjourn the senate like this, some conclusion has to come out.

Portland Condo Auctions · 4 weeks ago

We are not done paying for this one yet, I am not so sure that we need another credit or an extension to this one. Its just too expensive to keep doing.

-Tyler

Toby Barnett · 4 weeks ago

news can travel at the speed of twitter now

Kyle · 4 weeks ago

"without extending the tax credit NOW our entire housing market will be in for some ROUGH times. That's why we should extend it until (insert month) so things can recover more before pulling the plug!"

Replay argument again after extension when unemployment sits at 10+%, inflation kicks in, and interest rates are significantly higher. Actually, this scenario will probably prompt a bigger credit. yay for artificial floors!

SpokaneHomeGuy · 3 weeks ago

I will be very surprised if it goes through, but will be equally happy :) It's hard keeping up on it all the time! Thanks for the great info.

Jay Thompson · 3 weeks ago

I'll be very surprised if it DOESN'T go through.

It's expensive, it does artificially prop up prices, and it may be getting people into a home that they really can't afford (and look where that got us a few years ago).

But it would probably be political suicide not to extend it. And every politician has one primary focus and purpose in life -- getting re-elected.

rosmeanconsultants · 3 weeks ago

Thanks for the great info, cheers!

martyboardman · 3 weeks ago

I worked in TV news for 15 years before going into real estate. The newsroom motto was 'never let the facts get in the way of a good story'. It appears as though many real estate professionals have adopted the same strategy.

martyboardman · 3 weeks ago

Is there really a possibility that this extension won't happen now? The only unknown seems to be for how much and how long.

Jay Thompson · 3 weeks ago

Marty - I'd be stunned if the tax credit wasn't extended in some form. I do think it's premature to say exactly what form that will be.