Word is out that the stimulus package is set to pass or has already passed congress.
At least insult wasn’t added to injury through the $15K credit being discussed the last few days. That’s the current meme, and I wouldn’t be surprised if that later gets added to the next pork stimulus package.
Which should remind us what stimulus is supposed to be about:
My understanding is that they have decided to just make the already passed $7,500 a credit instead of a loan…
I haven’t found the article but someone told me it was posted on WSJ
“A $35 billion tax credit to support home sales was being jettisoned in favor of a more modest $2 billion to $3 billion proposal that would eliminate the repayment requirement in the existing $7,500 tax credit for first-time homebuyers.”
Woo Hoo!
ok, I think it’s a dumb idea, but as someone who just bought a home, I’m not going to say ‘no’ to (almost) free money.
QUIT TRYING TO SUSTAIN HOUSING PRICES… ONCE MORE D.C., IT’S TIED TO MEDIAN INCOME AND WHERE HOME PRICES SHOULD RANGE. Now we have the government going to buy up/modify assests on irresponsible home buyers and try to dump these into the private markets…. GOOD LUCK.
The tax credit that survived was closer to a temporary one passed last year by Congress. It is capped at 10 percent of the home price or $8,000, whichever is less.
Go get it!
If the average family of four in Orange County pulled in $160,000 per year, then the peak-bubble home prices could return ($400k range). Since the average family of four in SoCal pulls 70-80K (if that), prices will continue to drop until they come in line with incomes. Rising energy costs and water will also play a part in keeping prices down in the long term.
Look back to the values in 1998-99 – that is where things will likely bottom. There isn’t anything magical about real estate. Just pop out your calculator and find the median monthly income of families in your city. Once you’ve determined this, you can take 25% of that amount. That will be the amount of money a family could realistically afford for a monthly mortgage payment. With that mortgage payment, you’ll be able to determine what a family can afford for a house and THAT is where prices will land. As America becomes more prosperous, neighborhoods improve, and inflation continues, the median will rise for both property values and income. This is how real estate works and has worked for many years. As a matter of fact, this is how most things work. There has to be a balance. Once things lean too far in a single direction, things get out of hand.
Our country, and specifically California, really needs a reality check. Movie stars get the mansions. Everyone else gets what they can afford.