The news that the housing market is in turmoil is no news at all. So why is it that I am STILL hearing this on all the networks? I keep hearing that "maybe this stimulus package President Obama has put forth will finally get us out of this desperate housing situation". Desperate? Seriously? With interest rates under 5.5%, new homeowner stimulus of $8000 (for a home purchase over $80,000 and 10% of purchase price under) and energy efficient tax breaks for 2009 (up to 30% of the cost maximum $1500), large inventories and sellers finally becoming realistic about the value of their properties....well, desperate really isn't the term that comes to mind. The house market, my friends, does not stink.
What does stink, however, is this so-called stimulus package. Although I'm not going to comment on the entire package--and I do know it includes things other than just this housing credit---I am going to focus solely on this credit. While it's great first time homebuyers are getting a break, and can get up to $8000 "free money" what about all of us who have paid our mortgages on time, who have bought the "starter home", who have saved for our first home but would now like to "upgrade"? What about us? You know who you are: the ones who have gone without to cover the increase in the gas prices and grocery bills, the one's who have not taken a vacation last year--or went to Aunt Betty's instead of the beach. Where's our 'reward' for doing the right things?
It's not that I think this benefit should be reduced or taken away--I don't know. It's that it has excluded the majority of the population that is actually making the economy work!
Well, maybe none of you would really want to move into a bigger home and take advantage of a possible 5.0% interest rate. I mean, that would just mean you could get more home for the same price and we 'multi-time homebuyers' wouldn't want to do that anyway. There's nothing really we could do with that $8,000 anyhow...not like we have college, or retirement to replenish after our multiple stock crashes or anything. Banks probably shouldn't let us refinance to pay our debt down either, I mean someone who's never had the responsibility of paying for and maintaining a home is probably a better bet than us old fogies anyhow.
If this stimulus package didn't stink so much, somebody might have been able to actually wake up and smell the coffee.