The Real Estate Market is Getting a Much Needed Boost

July 31, 2008

uscapitolindaylight.jpgPresident Bush signed the Housing Stimulus Bill yesterday to create the Housing and Economic Recovery Act of 2008. The National Association of Home Builders has been urging congress to pass some form of legislation to help the housing market, and this is the response they got. The biggest hope for the Housing and Economy Recovery Act is a temporary tax credit for first-time homebuyers. If you are a first-time homebuyer and you purchase a home before July 2009, you are eligible for a $7,500 tax credit. Industry professionals are hoping this is the extra motivation needed to drive more buyers into the market. Of course, $7,500 does seem like a fantastic incentive. Ideally, this will help to diminish the number of inventory homes available, which will stabilize the real estate industry.

However, there is a negative to all of this encouraging news. If the housing tax credit does do everything it is expected to do, there will be a shift in the supply and demand. As the number of available homes on the market decreases, the demand will increase, and all of the fantastic values and homebuyer incentives offered by homebuilders will vanish. With this fact in mind, it’s safe to say that now is definitely the time to buy, especially if you are a first-time homebuyer. To help answer any questions you may have about the tax credit, the NAHB has launched www.federalhousingtaxcredit.com.

There is more to the Housing and Economic Recovery Act than the tax credit, and to get a good overview of what it all entails you can read this article from the NAHB.

About The Author

Read All Stories By Carol Morgan

Carol Flammer is a public relations and social media marketing expert, strategist and consultant. With 20 years of experience, Carol has established herself as the “go to” for real estate and construction products public relations and social media. Carol is president of Flammer Relations, Inc., and managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Atlanta and Chicago.

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