Congress axes $15,000 Tax Credit

The proposed $15,000 tax credit looks more and more likely that it is going down to defeat from Congress. This is a drastic blow to what is needed to spur home buying and get home pricing stabilized.

But not all is lost! It looks likely that that a more modest tax credit of $7,500 to $8,000 will be passed. I’m not so sure that this is going to give much steam to the market as there is already a $7,500 tax credit in effect although it is really just a 15 year loan. The new tax credit is designed to be a tax deduction that is designed as a grant to any first time home buyer.

We’ll keep you up to date as more information comes about in stimulus bill.