Please contact your senators, whereever you live, and encourage them to pass/keep the 15,000 tax credit proposal when it goes to conference with the House Bill.
There’s a pretty good question and answer on the Zillow blog
. The thing is, is that it’s not final till it’s final, and signed into law by President Obama. If passed and signed, it’s going get a WHOLE LOT MORE BUYERS to get off of the fence.
We’re already seeing a dramatic shift in the number of sales, and the ratio of pending contracts to available inventory. For example, in the area that I consider to be Downtown of the 89104 zip code, there’s only 83 homes currently listed. The previous high last July was 116. Thats a drop in inventory of 28%. In July there were only 14 under contract (12% ratio). Today there are 36 under contract (42% ratio)
From Homebuyer’s relocation:
The National Association of Realtors said Tuesday its index of pending home sales, which measures contracts signed but not closed, rose 6.3% to 87.7 in December from a month earlier.
Moody’s Economy.com cites signs that home sales are stabilizing as people snap up bargains on foreclosures, a decline in the supply of unsold homes in many areas and expectations of moves by the Obama Administration “that will help place a floor under the housing downturn.” Those measures could include lowering mortgage rates further, preventing more foreclosures and generating jobs through higher federal spending.
Currently the Stimulus package is considering a proposed $15,000 tax credit, which applies to all home purchases — not just new homes. It is sponsored by Senator Johnny Isakson, Republican of Georgia, a former real estate broker. He said it was modeled after a similar, $2,000 homebuyer incentive that helped lead the country out of recession in 1975. The tax credit would give buyers 10 percent of the price of a primary residence bought within one year, up to $15,000, and is intended to stabilize plummeting home prices. The amendment would allow taxpayers to claim the credit on their 2008 income tax return and to spread the tax credit over two years. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase.
The U.S. Senate on Friday also approved an amendment to an economic stimulus bill that would direct $50 billion in funds from the Treasury Department’s Troubled Asset Relief Program to foreclosure mitigation efforts. This program is estimated to prevent approximately 2 million foreclosures. The amendment also forces changes in the federal government’s $300 billion Hope for Homeowners program to increase participation. Under the amendment, homeowners would have to share 25% of future equity in their home, rather than the current 50% requirement.