There's been lots of discussion on ActiveRAIN over the last few weeks on the issue of extending and/or expanding the federal $8000 tax credit for "first-time" home buyers.
Now, most of that debate appears to be over. The direction Congress may go is quite clear. They will extend the current credit for six months -- or they will do nothing.
Many ActiveRainers have opposed the whole idea of the credit and any continuation of it. Many have wished for an expansion of the credit: either an increase to $15,000 and/or an expansion of the credit to enable all buyers in all income levels to qualify. Some of us, including me, have advocated a simple extension of the current credit, perhaps with some sort of logical phase-out.
Senator Johnny Isakson (R-GA), a former real estate broker, who authored the original tax credit has had a bill in the legislative hopper that would have both increased and expanded the credit along with extending it for one year.
Last Wednesday, Senator Isaksen joined Senate Majority Leader, Harry Reid and others to introduce a simple six month extension of the current credit.
This was reported on Friday by US News and World Report and today by Inman News Service.
Sen. Johnny Isakson has been quoted as saying: "December through February is historically the worst time for home sales anyway because of the winter months, so with the credit ending November 30, you have a double whammy" on the market."
Mark Zandi, the chief economist of Moody's Economy.com, has estimated a six-month extension would cost the Treasury between $15 billion and $17 billion.
He says that would be money well spent. "If you extended it to mid next year . . . by then the job market will be stable enough that we can allow the tax credit to expire and it won't totally submarine the housing market," he says.
So if you think this is a good idea, you now know what to get behind.
And, if you think this is a rotten idea, you know what to oppose.
May the best side -- that is my side -- win.
