Housing Recovery on the Way with Housing Stimulus Bill

According to Lawrence Yun, Chief Economist at NAR Research, a housing recovery is on the way. The recently passed housing stimulus bills should help stabilize the housing market. The American dream of home ownership is more attainable to first time home buyers. More families may be able to refinance into safer and more affordable mortgages, avoiding the devastation of home foreclosure.

One exciting provision of the recently enacted law is the home buyer tax credit. Up to $7,500 will be available to first-time home purchasers as they file their income tax returns. The amount is phased based on income level and is to be no more than ten percent of the purchase price. Yun stated the amount is equivalent to cash on tax returns. The credit will not be available after July 2, 2009. One should take advantage of the tax credit opportunity during this window of opportunity. Although the bill is still being analyzed by NAR, this is technically not a full credit. There are some payback provisions. However, money loses value over time, so this can still be a big boon. Historically, money is worth more now than it will be in the future. One could, for example, pay off a high interest credit card. With greater home buying and selling activity, credit markets should strengthen and mortgage capital flow more freely. Yun estimates nearly 3 million home buyers will take advantage of this tax credit opportunity before the bill expires in 2009. Will you be one of them?