Home buyers Tax Credit - Will they extend again?

By
Real Estate Agent with Keller Williams Realty, Independently owned and operated

I received an interesting article from a local lender here.............Jason Jenkins with MetLife about the home buyers credit.

This article is very interesting...........John Burns, president of John Burns Real Estate Consulting (JBREC),  suggest that we may not be on stable ground this summer and therefore will extend the credit.

I have very mixed feelings about the subject..............I do feel it gave us a boost and changed the way people think; to a more positive out look.  I am not all that sure we need to keep extending the credit as I feel this just may be a band aid and not a long term fix.

His comment"A lot of people are not buying homes right now because they're worried about their jobs," Burns said in an interview with HousingWire. "If the economy's not on stable ground in May or June, I wouldn't be surprised to see it extended again." Makes me think that we need to create more jobs and job security.  Until this is done that the credit is not going to help as if people do not have jobs - it will not matter if there is a credit and they will not be able to buy.

Now new construction sales would help, as that does create jobs.............but as long as we have a large inventory of REO's and short sales, why would you build? In fact according to this snip it : "With new homes, the homebuilders ran out of everything they could close by the end of November," Burns said. "There were people that wanted to buy in these communities that didn't because they couldn't close in time." The credit could have hurt new construction sales.

I realize I probably do not have the most popular opinion in the industry, but more concerned for the long term big picture.  I also realize once this credit goes away, that I fear I will have some down time in sales.  However have prepared for this in my business plan..........

 I am very torn with what I think should happen - just wish we knew so I can stop changing my business plan! 

Read full article here

 

Posted by

Michelle Gordon is a Realtor with Keller Williams Realty - Grand Rapids Michigan - voted the best Real Estate company by readers poll 2009 - 2010 in the Grand Rapids Magizine.  Focus on 1st time home buyers, Relocation and listings in the Kent County area.  You may find Michelle on facebook, twitter or linked in and she invites you to join her.

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  1. Robert L. Brown 03/08/2010 07:55 AM
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home buyers tax credit
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Rainmaker
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Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Michigan

Possibly. If it will stimulate the economy more and increase sales so people can still WORK. I call that a no-brainer. Then again i'm talking about the government.

Mar 08, 2010 07:55 AM #1
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Rainmaker
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Michelle Gordon

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