The Senate has added tax break for homebuyers to the stimulus bill, according to the New York Times.
The high points:
- Tax break is for 10% of the price of the home, up to a maximum of $15,000
- Expected to put $18.5 billion in the hands of homebuyers
- All home buyers are eligible
- Good for new or existing homes
Presumably, there’s still some horse trading to be done before this is real, so the particulars may change, but either way, housing will get a tax-credit based shot in the arm out of the stimulus bill.
Personally, I don’t see this tax credit as a game changer. Granted, it will help soak up some inventory, but the other fundamentals (tighter credit, awful jobs/economic picture) will not be washed away by a $15K tax credit.
Those that have already made the decision to buy (and a few fence sitters that will be lured in early) stand to benefit the most. If you are one of those, this is great news. Manna from heaven.