Everyone who is anyone in Politics, Finance, Economics and especially Real Estate is aware that the current First Time Buyer program is really fueling the Real Estate rebound which is more than decent kindling for the economy, in my opinion. A lot of us have written to our Representatives to let them know out thoughts on the importance of the issue. I've already received a response from Diane Feinstein.
2007 and 2008 saw ever increasing numbers of people buying their first home (as defined by the I.R.S. to be anyone who hasn't owned a home in 3 years). The tax credit incentive caused people to get off the couch and do something. This activity is responsible for generating income which lead to spending - Hmmm - I think that's what we are trying to so here....then, there are the credits themselves. A lot of people have been using the refund to spruce up their new homes and everyone knows that with that comes sales in Audio/Visual, Electronics, Furniture, Appliances, etc.... and maybe some people even paid off the family car, paid off credit card debt or bolstered their reserves for a rainy day. Sure seems like the desired effect is there or coming round the bend. The next step should be two-headed - Rental pricing should start to increase which should lead to more value to Investment Property owners resulting in increased activity in the Income Property market plus those Sellers who were not involved in distressed property sales may well be looking to buy up and those involved in distressed sales with FHA loans securing the properties will be starting to reach their 2 year limit and may again be eligible for an FHA loan. So......How important do you think an extension of the Federal Tax Credit is? There's several bills underway to extend and/or augment the current credit which expires 11-30-09. You might think about contacting your representatives and voicing your opinion. A phonecall or letter for America. Keep the faith!
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