Extend the 8K Home Buyer Credit

Real estate organization leaders are putting more intensive pressure on legislators to extend and expand the $8,000 first-time home buyer tax credit, now due to expire on December 1. Most industry leaders are calling on Congress to extend the tax credit program to at least November 30, 2010 and make it available to all buyers of homes to be used as their principal residence.

“If Congress acts to extend the tax credit program, it would spur 383,000 additional home sales, including 80,000 housing construction starts. That would create nearly 350,000 jobs over the coming year,” said Joe Robson, chairman of the National Association of Home Builders. “That’s good for the economy and good for America.”

Although there have been signs of economic stabilization in recent weeks, the unemployment rate is approaching double-digits. Without a concerted focus on the housing sector, that comprises more than 15 percent of the GDP, any hope for a recovery could fade, a NAHB report noted. “At best, it looks like a jobless recovery once it gets underway. This is why Congress needs to take bold, meaningful action now,” Robson said. Other major real estate organizations are making similar recommendations.