As reported in today's New York Times, the National Association of Realtors (NAR) is pushing Congress to extend the $8,000 tax credit for first time home buyers. Not only does NAR want to extend the deadline for this credit to last but also wants to increase the amount to $15k and extend it to all buyers.
If this change passes, this could be the kick in the pants that our economy needs. What do people do with that tax credit? They buy new furniture, new cars, shop in retail stores, dine in restaurants, take vacations. In short, it all goes back in to stimulate the economy. Exactly what it was intended to do.
Mortgage applications increased nearly 10% for the week ending Sept 3rd, which is the highest increase since early April. When the real estate market rebounds, the rest of the economy will follow.
As I keep saying, now is the time to buy a new home. Prices will start climbing back to what would be a normal rate of appreciation. The best deals are out there now and you have to shop smart and get the right person to help you.
Raymond
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