There's a push for Congress to extend the $8,000 tax credit for first-time homebuyers and to make it available to all buyers.
There's a push for Congress to extend the $8,000 tax credit for first-time homebuyers and to make it available to all buyers. (Photo: iStockphoto)
 

Like everyone else, I’ve been reading the cautiously optimistic news about the state of the housing industry in the last few weeks, including the increase in sales of existing homes and housing starts . It occurred to me this week that the gains might be short-lived because one of the things driving that progress -- the $8,000 first-time homebuyer tax credit -- expires on Dec. 1. That’s less than four months away.

So, I was happy to see a tweet yesterday about an effort from the National Association of Home Builders to extend the tax credit through Nov. 30, 2010. They’re also asking Congress to make the credit available to all buyers of principal residences, not just first-time home buyers.

This makes so much sense on so many levels. According to NAHB, extending the tax credit program would spur an additional 383,000 home sales, including 80,000 new homes, and create nearly 350,000 jobs over the next year. Every time a house is sold or built, it pumps thousands of dollars into the economy on purchases of everything from appraisals and title insurance to moving boxes and lawn mowers.

A tax credit has helped the housing market recover before, and it’s helping now.

It just needs some more time, given the enormity of the economic challenges we’re facing right now. There’s no down side to extending the tax credit another year and expanding it to all home buyers.

The thing that’s important to know is that this isn’t the first time Congress has been asked to make the home buyer tax credit more widely available. A bill introduced in January by Sen. Johnny Isakson (R-Ga.) would have provided up to a $15,000 tax credit for all home buyers of primary residences. It also would have made the money available up front for down payment and closing costs. It got some support on the Senate side, but none whatsoever from the House.

But maybe now that Congress has seen how consumers jumped on the opportunity to buy a car with some federal assistance, they’ll be more amenable to helping housing, which is a major factor in the nation’s economy.

Readers: We’d like to hear from you. Did the tax credit make it possible for you to buy a house? If you’re on the fence about buying a house now, would it make a difference for you?

 —Pat Curry