Feb 5, 2009 4:40 pm US/Eastern
Stimulus Bill Could Bring Relief To New Homeowners
Moderates From Both Parties May Cut Up To $100B From Package; Democrats Want Plan Passed Friday
NEW YORK (CBS) ―
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Sen. Chuck Schumer, left, answers a question on the economic stimulus pacakge while surrounded by U.S. Senate Majority Leader Sen. Harry Reid, Sen. Dick Durbin and Sen. Patty Murray at the Capitol on Feb. 5, 2009.
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How's a $15,000 tax credit sound to you? If the stimulus bill is passed, there would soon be some help for homebuyers.
In Rutherford, N.J. homes have been sitting on the market for more than a year. Arthur Smith got so fed up he took his house off the market last October.
"Year-and-a-half couldn't sell it. It didn't matter what the price was, it just didn't work," he told CBS 2.
Smith is now considering putting the "For Sale" sign back up after hearing about a proposed amendment to the federal stimulus package, which would give homebuyers a $15,000 tax credit or 10 percent of the purchase price.
"When this new plan comes down from the President and trickles down to the people in the streets then I will put it back on the market," said Smith.
Real estate company owner Michael Schilare says a credit would be an incentive, especially to first-time homebuyers, which he's been seeing a lot of since the election when sales picked up again.
"I had one couple after another and every single buyer were first time buyers because of the low interest rates and the low prices they felt that now is the time to buy," said Schilare.
The $15,000 tax credit would apply to anyone buying a home, but not to people who want to purchase a second house or make an investment. You would also have to buy the house within a year of the legislation's enactment to be eligible. Some sellers are not too sure if a $900 billion spending package is the answer.
"I don't know if it's going to help or get us worse in the hole to be honest with you," said Danny Budiniche, who has been trying to help his mom sell her house for six months now.
"This is one of the finer homes in town. If we're having trouble everyone is having trouble," he said.
So at this point, most people say a tax credit could only help, not hurt a slumping housing market.
The Senate voted by voice to add the tax credit to the stimulus package making its way through Congress right now. It would remain in effect for one year following the bill's package.
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