St Louis Home Loan Experts Are Calling the Home Buyer’s Tax Credit a Failure
In the last 24 months the American homeowner has had to face banking and real estate crises including unemployment rates that have been hovering in the double digits.
St Louis home loan professionals have feared that with unemployment escalating, there may not be any good news in the near future for the housing industry and that the expiring home buyer’s tax credit as a complete failure.
The biggest letdown to both political representatives as well as mortgage and real estate professionals is not only seeing this major federal stimulus package go down in smoke, but equally disturbing is the fact that this administration is equally failing at saving homes from inevitable foreclosure.
St Louis mortgage professionals also fear that a huge supply of discounted homes will hit the market in 2010 and this additional supply of homes will only worsen an already failing market situation.
As the deadline for the home tax buyer credit approaches April 30th, there is no evidence nor likelihood that we will see any increase in housing demand whether it would be new purchases or refinancing nor will this federal program be extended any time in the near future.
“No one is saying that they need to buy before the tax credit expires,” said Tim Surratt, a real estate agent. But ironically, that seems to be one of the biggest mistakes going for this sinking market.
Some experts are saying that the size of the tax credit at $6,500 to $8000 is actually too small to influence buyers to make any kind of immediate buying decision.
The real problem that the banking industry seems to agree upon is this in no way takes into consideration the needed savings to offset the home buyer’s down payment or commissions to real estate agents.
Let’s take for example a house that is priced at $164,000. If the real estate agent’s commission is at 6 percent, the amount paid would be $9840. In this case, as it would for most transactions, the expenses would be much higher than the $6500 to $8000 being offered.
“You’ve got a really big problem that requires big guns, and the tax credit is just not big enough,” said Roberton Williams, senior fellow at the Tax Policy Center.
Now that this federal program is close to being extinct, many are now arguing that more time should have been spent on making this stimulus much more financially appealing to Americans and perhaps less time should have been spent on the recent health care package.
Now it appears when things couldn’t get much worse, the social security system will no doubt need an emergency cash infusion sooner than later. Perhaps past failures will be a lesson for this new conquest.
Want to find out more about a St Louis home loan, then visit Floyd J. Tapia’s site on how to choose the best St Louis mortgage for your needs. Call his office 24 Hours at 877-334-0210 or 314-334-0210.
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