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Kirbi Smith, Real Estate Pro in 30540

Should the first time home buyers tax credit be reinstated?

Asked by Kirbi Smith, 30540 Thu Sep 9, 2010

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17
Eduardo Saavedra’s answer
I agree with all of you that know that a tax credit to purchase a home will not do much to aliviate the housing slump if you don't have a job you can't pay for the mortgage. Here in California earlier this year they were offering $18,000 credit to purchase a home but it really didn't do much for the market. What we need is to cut taxes to improve the economy since the money business saves will be used to build jobs.
0 votes Thank Flag Link Sun Sep 12, 2010
I think the tax credit for ALL homebuyers should be reinstated. When we had the 1st time homebuyer credit, all we had sales on were the lower end homes. This Real Estate market will not recover till the high end Sellers/Buyers can buy and sell, then the move up buyers buy and sell, AND the first time homebuyers also buy and sell. Why not give the tax credit to ALL purchasers and get this show on the road?
2 votes Thank Flag Link Thu Sep 9, 2010
No.

Absolutely not.

Enough with tax credits. Enough with distorting the market with incentives.

Enough with artificially boosting sales now at the expense of sales later. You ever watched a car driving through a neighborhood with speed bumps? Slow down for the bumps [no credits]. Then speed up between the bumps [credits]. Slow down for the next bump [credits expire].

Enough with favoring certain buyers over others. You have 2 buyers, identical in every way. Let's say they're 28 year old females in Virginia earning $65,000. Both graduated from college 7 years ago. But one bought a condo a year after graduating. The other rented. What makes the renter any more deserving than the owner?

Enough with false titles and terminology. That first time home buyers tax credit wasn't for first time home buyers. It was for anyone who hadn't owned a home in the past 3 years. Kind of like saying calling someone a "v-rg-n" (Trulia might not allow the full word) if he or she has been celibate for the past 3 years. Oh, really? And then the definition of "first time home buyer" was expanded to folks who'd owned their homes for the past 5 years. That's like calling a couple "v-rg-ns" if they've been faithful to one another for 5 years. Look: Words matter.

Enough's enough. Don't reinstate the tax credit.
1 vote Thank Flag Link Thu Sep 9, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If it will help stimulate the home sales I am for it. Getting more homes off the market so we can get back to a normal supply and demand situation is what is needed. There are too many foreclosure homes clogging up the market place.
1 vote Thank Flag Link Thu Sep 9, 2010
I think that the First time homeowner credit should not be reinstated, however I do believe a tax credit should be given to any new homebuyer. Even though it may be a "false" marke,t increasing the sales to eliminate the number of excess homes in the market will help in the long run. It is a skitish market and if it helps folks get off the fence and purchase it is a good stimulus for everyone. Homebuying helps the economy in so many ways. The more positvie news we get the better!
1 vote Thank Flag Link Thu Sep 9, 2010
I'm in agreement with several of these experts...the government needs to let this housing cycle run its course. What people need today is not another tax credit, what they need is a job. Tax credits are irrelevant if the majority of the people are unemployed. Did you know that our nation would be at about 10.5% unemployment if the Labor Dept. counted the 1 million people that have stopped searching for jobs?
Web Reference: http://shastaliving.com
0 votes Thank Flag Link Sun Sep 12, 2010
Hi Kirbi

After the federal tax credit expired, in California we had a state first time home buyers tax credit from May to August. It didn't really didn't do much to help market conditions. In fact, you needed to be reminded it was in effect.

That being said, I say no to reinstating the tax credit.

Barbara Grandolfo
0 votes Thank Flag Link Sun Sep 12, 2010
The fed needs to get out of the housing business and let the cycle run. I see this market hanging by a rope long enough to slowly strangle rather than kill it and start working on the next one. Yeah, it'll be a bit bloody but let's get it over with instead of just continuing to twist. Enough with the handouts - especially since I don't get any!
0 votes Thank Flag Link Sun Sep 12, 2010
While it did help I don't think it is the right way to go. We are already spending money we don't have. Isn't that the same reason they came up with credit card reform?
I am out here in Short Sale / Foreclosure heaven. Given the current economic conditions, fewer buyers and the volume in home sales has dropped every month since Feb 2010. Add to that myself and other agents I know are starting to get Short Sale and Bank Owned listing more listings and fewer buyers equals lower prices.
I think between lower prices and Interest Rates staying relativly flat the market will correct itself. We just have to wait it out.
Web Reference: http://www.edsellsre.com
0 votes Thank Flag Link Thu Sep 9, 2010
No, and the US real estate market sits in the waiting room.

Read the web reference.

"As near as we can tell, the US real estate market is just waiting. It doesn’t know whether to go up or down. Some areas are cheap – Detroit, Las Vegas, California. And some areas have barely dropped at all – such as Washington, DC, where the zombies live."

Why stimulate today's consumer for a special time period, some government funded bubble?

Values need to come down in order to establish some equilibrium with historic patterns.

"Here’s the scary thing, at least for homeowners: if this view is correct, house prices may still be overvalued by something like 30 percent. That’s roughly the gap between average household income growth and inflation over the last generation."

Why stimulate? Lets hold the banks accountable for write downs and short sales, and the consumers responsible for foreclosures, and get it done through natural supply and demand.

The basics apply. Most of the rest is funny money.

By 2023 or so, we'll find some counterbalance, so short term stimulus in the midst of a torrential deflationary upheaval is just bad policy.
0 votes Thank Flag Link Thu Sep 9, 2010
The first time homebuyer credit was there for some time and then extended again, those that jumped for it, got it...those that waited, lost out, their decision to wait. The first time homebuyer credit from what I understand is available for active Veterans for VA loans until April 2011. Agents throw that out to there and have them call a Direct endorsement VA lender like I am.

Lynel Adams
Sr Mortgage Consultant
0 votes Thank Flag Link Thu Sep 9, 2010
Kirbi,

If the real estate market needs a "boost" it probably would be best for it to take on a completely different look than the former tax credit program.

IMO, at this time the current low interest rates should be emphasized to buyers as opportunities to save....in most cases, this saving will be far greater that the tax incentive program. Thus, those that missed the boat....may just be able to reap the benefits.

Respectfully,

Bill
0 votes Thank Flag Link Thu Sep 9, 2010
I'm not certain this will help in any major way. Perhaps we need to let the chips fall where they may.
0 votes Thank Flag Link Thu Sep 9, 2010
No. Let the free market make the necessary corrections and allow the chips to fall where they may. Our country is slowly running out of time to fix some pretty serious problems for ourselves and future generations. The Federal Government cannot solve local problems no matter how many dollars they throw at them.

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.SellsRealty.org
0 votes Thank Flag Link Thu Sep 9, 2010
I don't think the tax credit should be reinstated. We need the natural forces of our market to get going sooner than later without all of these false and misleading indicators based on government intervention. The best thing that can happen for real estate is for the consumer to gain confidence in their jobs and the economy in general - work on that Washington!
0 votes Thank Flag Link Thu Sep 9, 2010
I agree with FSBO - stop all tax credits NOW!!! The housing market can't recover until natural market forces are allowed function. Let people qualify or not qualify on their own, don't use other people's tax money.
0 votes Thank Flag Link Thu Sep 9, 2010
Absolutely not! Time to stop giving out my hard earned tax dollars free to someone else!
0 votes Thank Flag Link Thu Sep 9, 2010
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