Congress will soon debate if the home buyer tax credit should be extended beyond the currently scheduled expiration date of November 30th.
Conservative estimates of the number of first time homebuyers that took advantage of this program start at 350,000 and go up from there. Needless to say it was a lot of people and the impact on the market was substantial – to the point where the housing market is driving the economy back toward a sustainable recovery.
It is estimated that the tax credit extension will cost the government another $10 Billion if it’s extended for a full year. Compared to the $700 billion in TARP funds that went to Wall Street and the $787 billion economic stimulus bill passed earlier this year, $10 Billion seems pretty reasonable – especially when you consider that money went DIRECTLY TO CONSUMERS instead of to banks, insurance companies and other corporate entities.
Further, assuming the credit is extended, according to NAR Chief Economist Lawrence Yun, the resulting economic growth and job creation will automatically lead to a rise in federal tax revenue easily covering the cost of the credit.
This is where YOU, the Grassroots of our Association, are most powerful. If you haven’t received or responded to the earlier NAR Call-to-Action, please click the button. It will take less than 2 minutes of your time and if it lands you just one more first-time buyer during the next year, it will be the most profitable 2 minutes you’ve ever spent. Please click now.