Homebuyer credit extension heads to Obama

[sportage]

Funny how all you'd think is happening in the country is BP and messy oil.

Other things are happening that you seldom hear about.

http://money.cnn.com/2010/06/30/news/economy/homebuyer_tax_credit/index.htm

First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday.

Qualified "existing" homeowners also have until Sept. 30 to close on new homes and receive a tax credit of up to $6,500.

President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.

The bill doesn't help anyone currently shopping for a home. Buyers must have "signed a contract by April 30" to qualify for the tax break.

 

[Starbuck1975]

Washington can only kick the can down the road for so long.

 

[ichy]

I wish they'd stop trying to re-inflate the housing market.

 

[EagleKeeper]

If it takes 120 days to close; there are serious problems in the system and paperwork.

Why doesn't they make it so such is permanent if they want to provide the assistance. As it is they are just whitewashing their intentions by putting in extension and renewl after renewal.

 

[Genx87]

Ha the April 30th requirement is the same as before. What is the point of this legislation? If you cant secure lending in 2 months what makes the govt and obama believe they can in 5 months?

 

[EagleKeeper]

Ha the April 30th requirement is the same as before. What is the point of this legislation? If you cant secure lending in 2 months what makes the govt and obama believe they can in 5 months?

apparently the system was so bogged down that some people were not able to meet the 30 June deadline.

So an arbitrary feel good date was then selected.

 

[spidey07]

Doesn't really change anything. Had to have the purchase agreement signed by april 30.

Oh, and they are going to do another round of credits. There's not been much talk but the first round (republican idea, they actually wanted 15K but 8K was the compromise) was very successful and didn't impact housing prices like the naysayers predicted.

You incent behavior, not punish it.

 

[BlahBlahYouToo]

I wish they'd stop trying to re-inflate the housing market.

seriously... let the correction happen.
are they too stupid to realize they're just prolonging the inevitable and/or reinflating the housing bubble?

they've tried to steer mortgage rates lower by buying LT treasury
coerce banks into lending to more customers
tax incentives for buying a home
tax incentives for fixing up a home
tax incentives for appliances for the home

 

[BlahBlahYouToo]

Doesn't really change anything. Had to have the purchase agreement signed by april 30.

Oh, and they are going to do another round of credits. There's not been much talk but the first round (republican idea, they actually wanted 15K but 8K was the compromise) was very successful and didn't impact housing prices like the naysayers predicted.

You incent behavior, not punish it.

don't know if it's local or not but home purchasing decreased around here as soon as the tax credit expired.
there was a huge buying frenzy right up until the deadline.

 

[ichy]

Get rid of tax incentives for everything! Not everyone should be a homeowner!

 

[spidey07]

seriously... let the correction happen.
are they too stupid to realize they're just prolonging the inevitable and/or reinflating the housing bubble?

they've tried to steer mortgage rates lower by buying LT treasury
coerce banks into lending to more customers
tax incentives for buying a home
tax incentives for fixing up a home
tax incentives for appliances for the home

The credit DID NOT INFLUENCE housing prices. It just incented people to buy. Home prices did not magically fall after the credit nor were they artificially inflated, in fact they actually were up a slight tick last month.

People aren't buying homes and it's not because of price, it's because of the uncertainty of a terrible obama economy.

 

[Jaskalas]

I wish they'd stop trying to re-inflate the housing market.

It's a sense of ego and delusion of grandeur on their part.

People are hurting, and so they think they must take action. They think we must live in that bubble economy and they'll use the full might and power of the federal government to do so.

They haven't bothered to consider the ramifications of their actions, as usual.

 

[spidey07]

don't know if it's local or not but home purchasing decreased around here as soon as the tax credit expired.
there was a huge buying frenzy right up until the deadline.

Yes, it did incent buying. Now nothing is moving. But it didn't influence prices.

 

[BlahBlahYouToo]

The credit DID NOT INFLUENCE housing prices. It just incented people to buy. Home prices did not magically fall after the credit nor were they artificially inflated, in fact they actually were up a slight tick last month.

People aren't buying homes and it's not because of price, it's because of the uncertainty of a terrible obama economy.

yes it did and it's a combination of both.
houses are still overpriced, and people don't have jobs.

before the tax credit expired, sellers were not budging on prices because it was known by both parties there would be $8k coming back eventually to the buyer.

 

[rudder]

Ha the April 30th requirement is the same as before. What is the point of this legislation? If you cant secure lending in 2 months what makes the govt and obama believe they can in 5 months?

Maybe they can sneak in some legislation that says if you make XX dollars a year, you are exempt from underwriting and can get the house.

 

[IceBergSLiM]

They need to maintain the illusion that we are in recovery and not severe recession.

 

[daishi5]

Yes, it did incent buying. Now nothing is moving. But it didn't influence prices.

Supply and demand does not affect prices in the housing market?

 

[spidey07]

yes it did and it's a combination of both.
houses are still overpriced, and people don't have jobs.

before the tax credit expired, sellers were not budging on prices because it was known by both parties there would be $8k coming back eventually to the buyer.

No it did not affect prices. Go google it.

In other news, the housing market is on verge of collapse without more credits. They WILL be doing another round, count on it. I'm following this very closely because we're currently selling two properties and buying another.

Also mortgage rates just set another record today for lows. People aren't buying and it's because of the obama economic uncertainty.

http://www.google.com/hostednews/ap/article/ALeqM5jljsJcu7uX4H65Rj0zDRmPQvMEQAD9GM9VF01

The number of buyers who signed contracts to purchase homes dropped in May to the lowest level on record, a sign the housing recovery can't survive without government incentives.

The National Association of Realtors says its seasonally adjusted index of sales agreements for previously occupied homes tumbled 30 percent in May. The index fell to 77.6 in May from 110.9 in April. May's reading was the lowest dating back to 2001.

Economists surveyed by Thomson Reuters had expected the index would fall to 98.4. The index also was down 15.9 percent from the same month a year earlier.

The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.

 

[Hacp]

Supply and demand does not affect prices in the housing market?

This isn't supply and demand. Demand remained the same, supply remained the same, government just put 8k in there for free. What it did was probably just raise the prices people could sell their houses for by 8k.

We need housing to crash. Its time we reward savers and punish spenders. Why is Obama propping up people who spent their money unwisely and stymieing the efforts of savers to swoop in and buy a cheap house?

 

[JD50]

What the fuck is the point of this if you had to have already signed a contract? How does this help anyone trying to sell their house?

/frustrated that I can't sell my house

 

[IndyColtsFan]

I understand why they're doing this, but that doesn't mean I like it. Of course, part of the issue is that I bought in October of 2008 and missed the first credit by a few months.

If these rates keep dropping, I am going to have to consider refinancing again after I already refinanced in March.

 

[alkemyst]

If it takes 120 days to close; there are serious problems in the system and paperwork.

Why doesn't they make it so such is permanent if they want to provide the assistance. As it is they are just whitewashing their intentions by putting in extension and renewl after renewal.

The homes still have to be under contract as of April 30. Some have not closed yet so it's only extending people who were already on board to get money.

 

[BlahBlahYouToo]

What the fuck is the point of this if you had to have already signed a contract? How does this help anyone trying to sell their house?

/frustrated that I can't sell my house

because many people did not close on time by 6/30 (yesterday), esp those involved in short sales.

 

[BlahBlahYouToo]

No it did not affect prices. Go google it.

In other news, the housing market is on verge of collapse without more credits. They WILL be doing another round, count on it. I'm following this very closely because we're currently selling two properties and buying another.

Also mortgage rates just set another record today for lows. People aren't buying and it's because of the obama economic uncertainty.

http://www.google.com/hostednews/ap/article/ALeqM5jljsJcu7uX4H65Rj0zDRmPQvMEQAD9GM9VF01

so basically it's saying that the tax credit artificially kept prices high.
if the housing market cannot survive without govt tax credits, that's akin to saying the housing market cannot survive with current housing prices.
it doesn't matter where the money comes from. either it comes during the tax return or off the sale price. the buyer is saving $8k regardless. it was price motivated.

don't think i'm not involved in this.
i'm also trying to buy and refinance several properties.

 

[Slew Foot]

there was a huge surge of home buying in APril around here and prices shot up (upwards of 50-100K as people tried to hurry and cash in). Since then, nothing is moving and prices are falling back down, the stimulus only served to keep prices high for a short bit, simple supply and demand, the first thing you learn in economics.