On Wednesday, the Senate voted for tax breaks up to $15,000 per homebuyer in hopes of stimulating the lagging economy. But what does this mean for the homebuying public?

It’s actually a step-up from where we’re at today. The measure allows for a credit of 10% of a new OR existing home’s value when purchased with a $15,000 cap. Current credits are capped at $7,500 and are limited to the purchase of new homes only.

In a proposal that would cost the government an estimated $19 billion, it’s a significant stimulus for the average home buyer. With a national median home price of $181,300 (data courtesy of National Association of Realtors), the average homebuyer can reap a significant benefit from the new credit.

It’s not all locked and loaded yet, however. The economic stimulus bill must make its way through Congress over the next week or so and the measure may lose traction completely. As several members of Congress are calling for the bill to be cut down in size, we may see this victory as temporary.

Bottom line: the government wants to reward homebuyers for contributing the positive direction of the economy. Perhaps it’s time to get on the phone to your local Congressperson’s office and tell them what you think. You can find contact information for your representatives nationwide here.
 

The Staff of San Juan Realty, Inc.