It Is the Best of Ideas. It Is the Worst of Ideas.
Wednesday, June 17th, 2009
A Wall Street Journal article reports Senator Johnny Isakson, a Republican from Georgia and a former real-estate broker, has introduced legislation to increase the Home Buyer Tax credit from $8,000 to $15,000. He proposes to remove income restrictions and in other ways make it available to many more people than currently qualify.
Buyers, be aware.
I am a Realtor in Seattle, and I observed what happened while last year’s $7,500 loan was being made into today’s $8,000 grant. Buyer’s held off, waiting for the $8,000. They got it, along with higher interest rates and competition from other like-minded buyers for the cheaper, first-time homebuyer-type properties.
Buyers will probably hold off again, waiting for the $15,000. The danger will be that any advantage gained by the increased home buyer credit amount will be offset by interest rate and price increases. The world really does work this way.
If buying a home solves a problem for you and your family, it is not a bad idea to buy now.
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