Extension on the $8K Tax Credit?

There's no doubt that this year's $8K tax credit has given a much-needed boost to our industry and to those seeking the dream of Homeownership. But as the Nov. 30th deadline that marks the end of the Tax Credit looms ahead, is there anything we can do to keep the boost going? RE/MAX President Vinnie Tracey thinks there is! Recently, he sent out a networkwide letter urging associates to contact their representatives and request an extension to the tax credit. This is an issue that doesn't just affect RE/MAX associates, but all real estate professionals in the U.S., and everyone's voice is equal as long as it is heard.

"A timely issue that is critical to the real estate industry, the expiration of the First-Time Homebuyer Tax Credit is on November 30. As most of you know, the First-Time Homebuyer Tax Credit has had a positive impact on our market this year. Over a third of all sales have been to First-Time Homebuyers, and research shows that each home sold puts about $60,000 into the local economy. A great return on the government's investment.

Although there are many competitors in our industry, we all agree on one thing: The Tax Credit has been beneficial and it needs to be extended. It would also be helpful to expand the credit to include all homebuyers. In normal times, we would not favor such government involvement, but these are not normal times. At RE/MAX International, we feel strongly that such Tax Credits will not only help stabilize housing prices, but will help us from falling back into recession.

Many independent analysts favor such a Tax Credit. Mark Zandi, Chief Economist with Moody's, says market conditions "remain extraordinarily fragile" and that "the risks of not doing something like this are too great." Zandi also says that the benefit multiplier of a Tax Credit for all homebuyers is greater than most other credits for individuals and businesses.

For those of you who would like to have some influence on the process, I would encourage you to write to your Senator or Representative in Washington. Now is the time to take action, before the Tax Credit expires. If you're not sure how to do this, you may want to use the automated email tools on the NAR web site, which makes the process quick and easy.

If you would like information on specific legislation to extend the Tax Credit, you may like to visit Senator Benjamin Cardin's web site (SB 1678). To learn about legislation that would expand the Tax Credit to all homebuyers, I would encourage you to visit Senator Johnny Isakson's web site, or Representative Howard Coble's web site.

The recovery is NOT certain yet. Our market is still fragile. Foreclosures remain at record levels, unemployment is still rising and home prices are not rebounding. An extended and expanded Tax Credit would provide continued momentum and keep us on the road to a full recovery.

You can make a difference. Contact your legislators, and please talk to your colleagues, clients and friends and do what you can to promote a Homebuyer Tax Credit."