HOW HAS THE CREDIT AFFECTED THE MARKET
The national association of Realtors has reported the rate of home sales for 2009 is 5.24 million. NAR says, the $8,000 First Time Home Buyer Tax Credit has brought 1.2 million buyers into this market. Of that 350,000 would have bought without the credit, therefore the credit has created 850,000 home sales in 2009.
ARE WE SETTING THE STAGE FOR ANOTHER CRASH
Never before has there been a time and place to give benefit to one group of buyers. Now, first time home buyers can buy for less than the cost to rent. Home values are so depressed, 5 years from now as we look back these people will have created real wealth by entering the market in a very opportune time. The LUCKY are buying now. I don’t believe at all we are setting up another crash, as so many sensationalized in their reportes. Hopefully, these buyers will be happy with their low payments in the future and not be swayed by lenders to use their home as a “piggy bank.”
WHAT IS THE COST TO SOCIETY
This is difficult to put a real number on. First of all, if there were 850,000 less home sales in 2009, would we be in recovery mode as we are today? You can’t value on that. Every single homeowner’s home is worth more due to this act. I calculate this will cost the treasury 9.6 billion dollars to pay all the tax credits. Yes, that is a lot of money, but remember the treasury has spent nearly a trillion dollars bailing out the banks for their fraudulent ways. This action, which is actually helping, cost less than 1% of that bailouT.
TAKE ACTION TODAY TO EXTEND THE $8,000 FIRST TIME HOME BUYER TAX CREDIT
Are you for or against this action? Are you for or against fixing the financial problem? Are you for fixing through incentive to first time home buyers, or just throwing 100’s of billions more to the banks?
If you want to help, follow this link:
http://takeaction.realtoractioncenter.com/campaign/hbtc?rk=R7_qUG9al5hHW
Just My Opinion…Jeff Cameron
480-652-2004