Will the tax credit be extended? This is the recent debate…..Let me put it very simply; YES! The housing market has made great strides since the commencement of the first time home buyers tax credit. In the month of July alone over one third of all purchases came from first time home-buyers.
We are at a critical point in our recovery. The last thing we need is to dip back into the deepest, darkest place our economy has been in; in over 70 years. It is imperative that we continue this stimulus. Let me give you an example of why it is so important:
First time home buyer purchases a $250,000 condo from a seller that has been wanting to “up buy” to a $450,000 home. The seller moves on and buys the $450,000 home which saves the owner the of $450,000 home from losing their home to foreclosure.
The first time home buyer who started this whole process now amends their 2008 tax return and receives $8,000 cash from Uncle Sam. Now the elated couple who is so proud of their new home goes to IKEA, Crate and Barrel, The Rug Company, Target, Bed Bath and Beyond and more. Since their purchase of their condo, they have now pumped all that money back into the economy. It has stimulated growth. Mission Accomplished.
As we can see from such a small example, this tax credit is doing exactly what it is suppose to do. With another 6-8 months of this program in place, we will see soaring sales numbers for months to come. Keep in mind that as fear subsides, confidence finds it way back to people like you and me. Let’s contact our local representative and tell them how we feel!
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