Industry Says It Supports $15K First-Time Buyer Tax Credit
However, a tax credit for first-time buyers, part of Pres.-Elect Biden’s housing plan, won’t do much good if a low inventory keeps pushing prices higher.
WASHINGTON – Several real estate leaders expressed optimism about housing market changes proposed by a Joe Biden administration, notably a $15,000 first-time homebuyer tax credit and likely new head appointed to the Federal Housing Finance Agency, which oversees mortgage financers Fannie Mae and Freddie Mac.
National Association of Realtors® Chief Economist Lawrence Yun says a $15,000 tax credit could go a long way in terms of helping first-time home buyers and minority households. But “Right now the housing market is facing a significant housing shortage,” he says. “If we add further stimulus to the demand without addressing the supply … it will simply bump up the prices even higher.”
Yun adds says that the ability to buy a home is a monetary issue, and the homebuyer tax credit won’t have as much impact without also trying to stimulate more housing construction.
“The challenges are [for] people who are renters, and just simply getting frustrated that their American Dream is getting out of hand,” Yun says. “That $15,000 will certainly help the possibility for the potential first-time buyers, and the only way to make that impactful is to ensure that we have sufficient supply available as we go into 2021.”
Source: HousingWire (11/09/20) Falcon, Julia