In the last 24 months the American consumer has had to face business and real estate crises including unemployment rates that have been hovering in the doubledigits.
St Louis home loan analysts have feared that with unemployment escalating, there may not be any good news in the near future for the housing sector and that the expiring home buyer’s tax credit as a complete failure.
The biggest discouragement to most political representatives as well as mortgage and real estate professionals is not only seeing this major federal stimulus package go upin smoke, but equally distressing is the fact that this administration is equally lacking at saving houses from certain foreclosure.
St Louis mortgage analysts also fear that a huge supply of discounted homes will hit the market in 2010 and this increase in supply of homes will only worsen an already failing industry situation.
There seems to be a distressing type of atmosphere that is sitting over this ruined real estate market frankly due to there being no sign of any upturn in the demand for buying properties or refinancing. And for those hoping to see some sort of extension as regards the tax credit program, think again.
Tim Surrat, a practicing real estate agent , made the comment that, “No one is suggesting that they need to buy before the tax credit expires.” And that appears to be the most reasonable outcry one could rightfully make at present .
Many St Louis refinancing analysts have agreed that the $6500 to $8000 tax credit has simply not been enoughas far as a monetary incentive to entice people in making a buying decision now .
Mortgage, banking and financial consultants have stated unequivocally that the savings on account of the home tax buyer’s credit will definitely not offset down payments or any other transactional expenses .
At current prices, the national average price for a home at present is close to $164,000. If an agent charges 6 percent for their services, the total would be $9840. Logically, the $6500 to $8000 tax credit would not offset the commission being paid.
As Roberton Williams, a senior consultant at the Tax Policy Center, said: “You’ve got a really exorbitant problem that requires big guns, and the tax credit is just not big enough.”
Many lobbyists are saying more time should have been spent on making this program much more financially advantageous to buyers rather than the apparent squandered time on the controversial passage of the present health care program.
Let’s now turn our attention to the social security debacle that seems to be looming on the horizon. It too will need cash infusions to exist. Well, if this is fixed, one out of three wouldn’t be that bad.
