Read in HousingWire today, although I've admittedly been following this since it was first just a hint, and I've probably blogged about it as well.
Quite honestly, I still feel basically the same. That, while it will help buyers with the expense of buying, it will not help with the lack of inventory which is the main driver in the pricing of homes for the last 12 months.
"President called for a first-time homebuyer $15,000 tax credit, and Congress has answered his call.
Today was introduced the new legislation, dubbed the “First-Time Homebuyer Act.” The bill would provide a tax credit for first-time homebuyers of up to 10% of the purchase price, or $15,000.
In order to be eligible for the full credit, potential buyers must not have owned or purchased a home within the past three years.
The program would be targeted to low- and middle-income earners. Participants must also make no more than 160% of the area median income, and the home’s purchase price must be no more than 110% of the area median purchase price. Borrowers could claim the credit for primary residences purchased after Dec. 31, 2020.
Borrowers would need to use the home as a primary residence for at least four years, or face taxes to recover a portion of the credit."
We need more housing, we need lumber to be cheaper, we need builders to build more affordable housing, that's all there is to it. But, alas, it is not that simple now is it?
With a new tax credit, it will help some of my first timers. This is not set in stone yet, but since we've had some in the past, I'm pretty sure this will become stone soon. Oh, and they are trying to pass a down payment assistance program as well.
Again, I think it's wonderful. BUT, without more ways to find more housing.....it's just going to put more buyers out there in an already overloaded buyer pool, and drive up prices even further out of reach for some First-Timers.
My humble opinion. Now, who wants to sell their home today?
Let's work on that overloaded pool now!
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