Lawmakers, Consumers, Realtors and others are advocating extending and broadening the current tax credit for first time homebuyers to stimulate more sales for Las Vegas Real Estate. The existing $8,000. tax credit is set to expire this fall and many advocates feel this amount should be raised to $15,000. and not only applied to first time homeowners, but anyone who is buying Las Vegas Real Estate.
Las Vegas Real Estate & National Perspective
First, the background. Approximately 40% of all home purchase here in Las Vegas and around the USA are comprised of first time homebuyers, which is about 3-5% higher than the historical average. This credit was originally announced in July of 2008 but was expanded in February of this year as part of the overall economic stimulus package.
Some individuals, financial analysts and others feel that broadening and extending the existing legislation may hit some resistance with Congress, due to the increased criticism the Obama Administration is getting based on the expenditures it has been advocating.
However, like many Realtors around the country, we think extending and strengthening this credit would be good for not only for the Las Vegas Real Estate market but for all of the services based businesses that derive fees from real estate sales.
Pending Legislation & Recommendations
We believe that Congress and/or the Obama Administration should extend the period of time for the tax credit, broaden the impact in terms of people who can use it, including investors in some way and increase the amount. Pending Legislation includes:
- Senate bill to expand the tax credit to $15,000. for any homebuyer, with income not being factored; introduced by Senator Isakson, R-GA and co-sponsored by the Senate Banking Committee Chairman, Chris Dodd, D-CT.
- Two House Bills to keep the $8,000 credit in place until June 2010 and expand to all homebuyers, coupled with a $3,000 credit for homeowners who refinance, Rep Marchant, R-TX; second Bill by Rep. Johnson, D-TX would extend the credit to all homebuyers through 2010.
- The Business Roundtable, a consortium of CEOs from large companies have urged Congress this month to expand the tax credit to $15,000 and make all homebuyers eligible for this amount of tax credit
Help for Las Vegas Real Estate
We believe extending the timeline for the tax credit and making the credit larger will of course help the Las Vegas Real Estate Market. But, of equal importance, broadening the reach of a tax credit to include investors and other purchasers who may be upgrading could also help the local and national markets. Please call us today (877.360.2030) if we can assist you in any way with the purchase or sale of Las Vegas Real Estate.
