Clock Ticking On First-Time Homebuyer Tax Credit

APReport ^

[Steelfish]

Clock Ticking On First-Time Homebuyer Tax Credit Lawmakers, industry debate efficacy of continuing $8,000 allowance

"It was a wow moment," says Charles Curtis, of finding out about the credit. He and his wife are trying to buy a New York City apartment with an $895,000 all-cash offer.

As days tick off the calendar, the life span of the much-ballyhooed tax credit for first-time homebuyers is drawing to an end — unless Congress decides to extend it.

There have been more than a dozen bills introduced in Congress to prolong the life of the tax credit past the Nov. 30 deadline, and on Thursday Senate Majority Leader Harry Reid endorsed the idea of extending the credit for an additional six months. The housing market has been devastated in Reid's home state of Nevada.

This week, the White House said its economic team is evaluating the credit's impact on home sales and will make a recommendation to President Barack Obama.

Treasury Secretary Timothy Geithner said Thursday he hasn't "made a judgment yet" on extending the credit. "Obviously that's something that I'm going to take a careful look at."

The credit is helping stabilize the housing market, but there are conflicting views about the practicality and cost of an extension. The National Association of Realtors and the National Association of Home Builders have launched marketing campaigns touting the credit and have pushed Congress to keep it going. But some lawmakers are balking at the cost, which may hit an estimated $15 billion — more than double the amount projected in February's economic stimulus bill.

The federal tax credit covers up to 10 percent of the home price, or up to $8,000, for first-time buyers.

[BunnySlippers]

There was talk about extending it in yesterday’s gaggle.

[Steelfish]

Of course:

“On Thursday Senate Majority Leader Harry Reid endorsed the idea of extending the credit for an additional six months. The housing market has been devastated in Reid’s home state of Nevada.”

[doug from upland]

“It was a wow moment,” says Charles Curtis, of finding out about the credit. He and his wife are trying to buy a New York City apartment with an $895,000 all-cash offer.

So this guy is wowed by an $8,000 savings on an 895K apartment?

[datura]

"He and his wife are trying to buy a New York City apartment with an $895,000 all-cash offer. "

And the author is telling us that the $8K tax incentive matters to these people? Almost $900K in CASH?

[bray]

First time homebuyers are what got us into the problem in the first place. More foreclosures on the way.

Pray for America

[datura]

It seems that the $8K incentive should be more often applied to someone who makes $30K a year and is trying to buy their first house somewhere like Ohio for $75K, sorry. If you’ve got almost a million dollars in cash, 8 grand is pocket change.

[2banana]

"It was a wow moment," says Charles Curtis, of finding out about the credit. He and his wife are trying to buy a New York City apartment with an $895,000 all-cash offer.

A 1% savings is a WOW moment????

[Thank You Rush]

“”So this guy is wowed by an $8,000 savings on an 895K apartment?””

On an all cash offer, no less! Why am I skeptical of that?

[dragnet2]

So this guy is wowed by an $8,000 savings on an 895K apartment?

lol....

[dragnet2]

It seems that the $8K incentive should be more often applied to someone who makes $30K a year and is trying to buy their first house somewhere like Ohio for $75K

Since everything is relative, how about a 28K incentive for those first time buyers in states with higher end properties? lol...