Will a Tax Credit Extension Aid the US Market?
Posted by Foreclosure Prevention in Real EstateA 3.5% rise for the third quarter, in the GDP, is brilliant news for the United States economy. Furthermore, the once-ailing real estate market has shown great improvements since last winter.
Is the United States embarking on the path to recovery? There is a surplus of 7 months worth of stock on the US real estate market at this point in time. There has been great inroads into the excess stock on realtors book’s considering this figure was just about double at the onset of the year. Anybody looking to purchase a property and the real estate agents are closely following the first time home-buyers’ tax credit.
The tax credit on offer has been a great incentive in boosting the US real estate market when potential buyers could receive up to $8,000 in tax credits or cash back. But as the expiry time limit for this distinctive offer comes imminent, market watchers are becoming nervous. What is the following step once these lures have ended?
Lawmakers have already prepared an extension bill, which may push the cut off further to the year 2010. Senate has presently cleared the way for the law, which may make it to Obama this week or next. The proposals will raise the couples income threshold to $225,000 and the extension will finish on 30 April. As not to miss anyone out there is also a $6,500 tax credit to be linked to the bill for those individuals who want to move-up.
If this bill goes through, then the incentives offered should encourage the movement within the real estate market, but the question is – how is the budget going to finance it?
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