The $789 billion stimulus package may have limited impact on the very industry that brought on the economic downturn: real estate. The Senate's version of the package included an up-to-$15,000 tax incentive for home buyers. However, the Democrats cut the amount down to 10 percent of the home price or $8,000, whichever is less, and restricted the tax credit to first-time buyers who make purchases before Dec. 1, 2009. After some political wrangling, it was determined the money would generally not have to be repaid, preserving a key distinction of the Senate version.
Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley said: “Overall, I would say this is a mild positive, they had the provision in there that would have led to a wildfire in demand for housing and they took it out." Joseph Perkins, chief executive officer of the Home Builders Association of Northern California, said $8,000 has a negligible effect in high-cost housing markets such as the Bay Area.
So, while the bill could increase home buying, it doesn't do nearly enough to jump-start building or stem the foreclosures that are driving down prices. San Diego income property
It’s just surprising that so many people with the clear signs that were present in 2004 and 2005 didn’t say that the San Diego real estate bubble was about to bust.
San Diego investment real estate
Real estate speculators should not be bailed out by the government.
Tijuana Dentists
I remember in 2005 that it seems every month the paper reported that real estate sales were down by double digits though the values seem to be holding up. You would think an intelligent person would realize sales cannot drop by such a magnitude without values following.
San Francisco attorneys