If you’ve been thinking about buying and you qualify for the $8000.00 tax credit, now is the time to do it! -Jean
New home subsidy unlikely to get through Congress
The Obama administration introduced an $8000 tax credit for first-time homebuyers in February in order to stimulate the housing market. Some believe the government should do more and offer incentives to all homebuyers. Johnny Isakson, a Republican Senator, has submitted a proposal to offer all buyers a $15,000 tax credit for home purchases. Isakson said the rising number of foreclosures "is continuing to precipitate a downward spiral in values, loss of equity by the American people and a protracted, difficult economic time." Analysts believe that the proposal may not find favor with Congress.
"There is bailout burnout across the country," said Brian Gardner, senior vice president at Keefe, Bruyette & Woods. "There's an argument for the stimulus, but the possibility of the bill passing is unclear," said Gardner. The proposal will cost the government $30 billion. Jaret Seiberg, a policy analyst for Concept Capital's Washington Research Group, said that "in an era of record deficits, it will be hard for lawmakers to accept that cost." The National Association of Realtors and National Association of Homebuilders have welcomed the bill since they expect the proposal to eliminate oversupply of homes and stabilize the property market.
