Extension Bill to Motivate the US Housing Market
// November 19th, 2009 // Real Estate
A 3.5% rise for the third quarter, in the GDP, is brilliant news for the United States economy. This good news also continues within the property market, which is now starting to exhibit improvement.
Is the United States finally on the road to recovery? There is more than 7 months worth of stock on the US property market at this point in time. There has been great inroads into the extra stock on realtors book’s considering this figure was just about double at the start of the year. Anybody looking to buy a home and the real estate agents are closely watching the first time home-buyers’ tax credit.
With $8,000 in tax credits, or even cash back in some instances, these available tax credits have gone a long way in helping boost the property market. All good things must come to an end and these tax credits are due to expire soon, leading to nervousness amongst the market watchers. When the tax credits are no longer on the table what is going to happen to the property market?
Lawmakers have already formulated an extension bill, which may push the cut off further to the year 2010. The US president should feasibly have this bill which has had it’s passage cleared by the Senate. With a new cut off date of April 30, and an jump to $225,000 on the couples income threshold, this is a very pleasing bill. And that’s not all – a new $6,500 tax credit for move-up real estate owners was linked to the bill.
Potential property purchasers may be delighted with the new bill, it may be the incentive needed to keep the market moving, but how are these incentives going to be subsidized?
