Housing Stimulus: State of the Housing Stimulus Package In Congress and More
January 27th, 2009 Categories: Charlotte News and Politics, Housing Stimulus
$7500 Tax Credit to New Buyers In House Bill- REVISED: NOW $8000, 75K INCOME LIMIT.
That’s the good news. Over in Charlie Rangel’s office, the House Ways and Means Committee is drafting the economic stimulus package that President Obama speaks about daily and hopes to have passed by mid- February, and a
$7500 Housing Tax credit is In IT for home buyers who have not bought a home in 3 years, who are buying for their primary residence, and with income below $95K individually, $170K jointly.
Real tax credits, for those out of the home market the last 3 years. They currently deadline when the old credits do, July of 2009, and the NAR is working to extend them through the end of the year.
This is big news, rocket fuel for the Realty business. I have to say I like that!
There are two competing schools of thought here… one says once the economy shows signs of rebounding in say 5-6 months, housing will rebound right along with the rising consumer confidence.  The other says, too many homes are losing value for no good reason now, and if we stimulate housing through tax credits and low interest rates, housing may take the lead in leading our economy out of the recession.
The first thought, wait and let the economy pull housing up, depends on the notion that since the average recession since World War II has lasted “only” 18 months, and we are more than 9 months in, then help for housing is really just around the corner-5-6 months, so best to just watch and wait.
It’s obvious I favor the 2nd approach, a more aggressive approach that stops the falling prices where they should stop falling- the 66% of the markets that didn’t over inflate (according to PMI)Â This not only prevents the continuing destruction of wealth in home values- America’s other savings plan, but does not rely on the unknowable argument of when this slow down will end. Without agressive government intervetion, this is recession is likely to last much longer. Japan faced a similar melt down in their banking industry, and responded very slowly, and it spread throughout their economy.
It didn’t last 18 months, today the Japanese call it the “lost decade.”
Also we need to deal with all the workouts that need to be done- we can’t have a million foreclosures a year, or more, and get a healthy home market.
Alas, it looks like President Obama needs to send his enforcer, Rahm Emmanual, over to the House, not to speak to the Republicans but members of his own party who see the “Stimulus” bill as one way to get everyting they’ve wanted the last 8 years.
I know this is radical but The Stimulus must Stimulate!
Out of the 800B or so, just 30 B (3.7%) is marked for roads and bridges, 800M of that goes to NC, and under the current formula’s, 76M to Charlotte. $76M! Not enough to complete I- 485 at about 120M. @#$@#$%e Not Enough!
The Housing Tax Credits are Real Stimulus, but much of this bill isn’t, and like many I’d like to see more investments in our future. In an 800B bill, you would think we could get 100B for infrastructure, and another 50B making higher education more affordable. We are no where near that now. President Obama, please send Rahm over to discuss the urgent need to invest in America in his “forthright” way. It is just too important to screw up.
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