If the $8,000 first time home buyer has proven to bring reluctant first time buyers into the market then the recently proposed $15,000 tax credit to all buyers could be a game changer. The real estate market has been in the doldrums for the past few years and with the introduction of the first time home buyer credit earlier this year the market has finally begun to see home sales increase with 40% of first time buyers making up the market.
The idea behind the most recent bill, introduced in mid-June 2009 and referred to the Committee on Finance, would be to increase the current home buying credit from $8,000 to $15,000 and to release the restriction that the home buyer must be purchasing their first home in order to be eligible for the tax credit. The bill, S. 1230: The Home Buyer Tax Credit Act of 2009, was originally introduced by Sen. John Isakson [R-GA] and is currently co-sponsored by 15 Senators.
The bill is unlikely to see much face time until the current first time home buyer credit runs its course and expires on December 1, 2009. As unfortunate as it may be, delaying the passing of an increased home buyer credit until the expiration date passes on the current incentive makes perfect sense. Rather than first time buyers holding off on their purchases in anticipation of an even greater credit they will continue purchasing homes through November 2009.
That said, should a $15,000 home buyer credit eventually come to fruition for buyers in 2010 the potential for an increase in the sale of luxury and new homes is significant as more buyers and current homeowners are able to take advantage of the new credit.
Have you seen a dramatic increase in home buyers eager to take advantage of the current $8,000 tax credit or has it been business as usual? Will a $15,000 tax credit make a difference? Tell us what you think in the comments below!